China’s Yangtze Memory Technologies is expected to start operations at its Phase 3 Wuhan fab late this year as the first leading-edge memory plant built to comply with Beijing's unwritten requirement that new Chinese fabs source at least half their equipment from domestic suppliers.

Three sources familiar with the plans told Reuters that more than 50% of Phase 3's tooling has been sourced inside China, that the company aims to add two more fabs of equivalent scale on top of the Phase 3 plant, and that the latter two are not yet committed to specific dates or locations. Phase 3 alone will reach 50,000 wafers per month by 2027 and 100,000 wafers per month at full capacity, doubling YMTC's current 200,000 wafers per month of combined capacity at its first two Wuhan fabs.