{"text":[[{"start":11.56,"text":"YMTC aims to overtake Samsung and SK Hynix to become the world’s largest Nand flash memory producer as the Chinese company gears up for a stock market listing."}],[{"start":20.3,"text":"The Wuhan-based group told investors and stakeholders in recent IPO preparation meetings that it wants to take the global Nand crown by as soon as the end of 2027, according to two people with knowledge of the matter."}],[{"start":20.8,"text":"Last week, YMTC filed for an IPO to raise Rmb33bn ($5bn), mostly to upgrade production facilities as well as for research and development, according to a prospectus published on the Shanghai Stock Exchange website."}],[{"start":21.3,"text":"The chipmaker had operating revenue of Rmb47bn ($7bn) in the first quarter. Net profit was Rmb33bn — more than double the total for the whole of 2025, according to its IPO prospectus."}],[{"start":21.8,"text":"YMTC, which is yet to set a timeline for its market debut, is expected to reach a market valuation above Rmb1tn ($150bn) after trading begins, making it the second-largest IPO in China this year. However, the shares will probably be priced conservatively under regulatory guidance, according to a banker involved in the process."}],[{"start":22.3,"text":"Market consensus put its IPO valuation at Rmb200bn to Rmb300bn, while the exact figure was yet to be finalised during the listing process, they added."}],[{"start":22.8,"text":"YMTC has accelerated its IPO plans following the successful debut of CXMT, another Chinese leading memory-chip maker that primarily makes DRam chips."}],[{"start":23.3,"text":"Its valuation surged more than 400 per cent late last month after raising $9bn in Asia’s largest IPO this year. CXMT is now China’s most valuable listed company, worth $580bn."}],[{"start":23.8,"text":"Nand chips are a type of hardware that can store data without a power source and are most commonly found in devices such as smartphones and tablets. DRam chips store data temporarily and can be used in computers as well as for AI processing tasks."}],[{"start":24.3,"text":"Unlike GPUs, which require leading-edge lithographic production equipment that US sanctions actively target, memory manufacturing relies heavily on stacking architecture and process optimisation — areas where Chinese firms have rapidly narrowed the capability gap."}],[{"start":33.96,"text":"By leveraging state subsidies and a world-leading electronics supply chain, YMTC and CXMT are both capturing a bigger slice of the Nand and DRam markets."}],[{"start":42.96,"text":"The gains provide them with both the cash flow needed to fund further research and the leverage to establish China as an indispensable player in the global technology ecosystem, regardless of western trade barriers."}],[{"start":55.68,"text":"According to TrendForce, a research and consulting company, YMTC ranked third globally and first in China among global Nand producers in the first quarter, behind Samsung and SK Hynix."}],[{"start":68.12,"text":"The global Nand market size was estimated to be worth $71bn last year, a figure expected to surge to more than $300bn in 2026, according to TrendForce. The market is expected to be worth about $490bn by 2030."}],[{"start":85.04,"text":"Many investors are concerned that CXMT and YMTC’s ambitious expansion plans will cause memory chip prices to slide, ending a bull run for stocks in the sector. They have been among the biggest winners from the AI frenzy."}],[{"start":98.36,"text":"Joanna Yang, a portfolio manager at Ninety One, said: “For global investors, one question is how these Chinese companies’ capacity expansion is going to impact the supply-demand dynamics for memory. This is a global product — it has global pricing.”"}],[{"start":112.72,"text":"Cameron Chui, Asia equity strategist at JPMorgan Private Bank, said: “Is China adding new capacity? Absolutely.”"}],[{"start":120.32,"text":"However, he remained optimistic on the sector due to rising demand for memory chips needed for training AI models. “Supply is growing but we think demand grows faster. We think it’s not enough to balance the market.”"}],[{"start":132.64,"text":"YMTC did not respond to a request for comment."}],[{"start":143.04,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1787729843_7941.mp3"}