The growing demand for storage chips driven by artificial intelligence has reshaped the memory landscape. A Chinese company has now claimed the third position in the NAND flash memory market, a key segment for data storage.

In the larger DRAM memory chip sector, another Chinese firm ranks fourth globally. On Monday, June 16, 2025, a data center campus in London's Docklands showcased liquid-cooled servers, highlighting the increasing need for efficient computing. Nvidia CEO Jensen Huang has predicted that Europe's AI computing capacity will expand tenfold over the next two years, with over 20 so-called AI computing factories currently under construction.

According to data from market research firm Counterpoint, Yangtze Memory Technologies Co., Ltd. (YMTC) is rapidly gaining market share in this essential chip space. Data released by the firm on Wednesday shows that in the second quarter of this year, YMTC shipped the third-highest volume of NAND flash memory chips globally, trailing only South Korea's Samsung and SK Hynix, while surpassing its U.S. competitor Micron Technology and Japan's Kioxia. These rankings are based on the NAND flash memory market. NAND business accounts for roughly a quarter of Micron's revenue. NAND chips retain data after power loss, though they have slower read and write speeds compared to DRAM memory, which is faster and significantly more expensive, contributing about three-quarters of Micron's sales.

The report indicates that YMTC secured the third position with a 14% market share. Counterpoint Research Director MS Hwang noted that a year ago, YMTC had a slight lead over Kioxia, only to be overtaken in the following months. "We expect YMTC to widen the gap further by 2027-2028. From this perspective, breaking into the global top three this quarter will profoundly reshape the competitive dynamics of the industry," Hwang stated. He added that to secure funding and sustain capital expenditure for long-term growth, a memory manufacturer needs at least a 15% market share.

Following the successful listing of Chinese DRAM-focused firm ChangXin Memory Technologies last month, YMTC is now preparing for its own initial public offering on the Chinese mainland. In another Counterpoint report earlier this month, it was found that ChangXin Memory Technologies held a 7% share of the global DRAM market in the second quarter, ranking fourth behind Micron, SK Hynix, and leader Samsung. Counterpoint data also shows that sales revenue for both the DRAM and NAND flash memory markets hit record highs in the first quarter, reaching nearly $100 billion and $46 billion, respectively. The research firm also pointed out that despite YMTC's increase in shipments, its NAND chip revenue still trails Micron and Kioxia. Currently, YMTC's products are more oriented towards the consumer market rather than data centers. The firm forecasts that by the end of 2026, data center demand will absorb half of the global NAND flash memory production capacity.

South Korean media reported this week that SK Hynix has resumed investment in its factory in the coastal Chinese city of Dalian after a four-year pause, aiming to expand NAND production capacity. SK Hynix had not responded to a request for comment by the time of this report.