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Investing.com -- Macquarie identified two Chinese semiconductor equipment makers as primary beneficiaries of YMTC’s planned factory expansion, according to a research note released Wednesday.
China’s leading NAND memory chipmaker YMTC is planning a production ramp-up that includes two additional factories, each with a designed capacity of 100,000 wafers per month, according to a Reuters report. The company currently operates two fabs with a combined capacity of 200,000 wafers per month, with a third facility adding 50,000 wafers per month by 2027.
Once all new plants are operational, YMTC should have the world’s largest NAND wafer capacity, Macquarie said. The firm noted that YMTC’s main market would likely remain in China as it is on the US entity list.
YMTC previously invested more than 270 billion yuan across its first three phases. Macquarie estimates the additional capex for the two new fabs to reach 160 billion to 180 billion yuan over the next few years.
The Reuters report highlighted that for the Phase 3 equipment installation currently underway, more than 50% of the tools have been sourced from local suppliers.
Macquarie named SSE:AMEC and SZSE:NAURA as key beneficiaries. According to Gartner data, 75% to 80% of total capex is allocated to semiconductor production equipment in China, with etching accounting for 26% of equipment spend and deposition accounting for 23%.
As a leader in etching equipment, AMEC is a primary beneficiary as etching is one of the most critical processes in 3D NAND, Macquarie said. NAURA, with its portfolio across deposition, etching and cleaning, stands to capture a portion of the additional capex, the firm added.
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