China's flagship memory chipmaker filed for an initial public offering in Shanghai to raise $4.9 billion, which would be one of the country's biggest semiconductor-makers' share sales in years.
The funds raised by Yangtze Memory Technologies, or YMTC, should boost its production and mark another step in China's efforts to reduce its reliance on foreign chip technology as the global artificial intelligence competition intensifies.
YMTC, China's leading maker of NAND flash chips, said in its listing prospectus on Friday that revenue in the first quarter was 47.04 billion yuan, equivalent to $7.0 billion, and beat its revenue for the whole of 2024. Revenue from its core NAND flash products surged nearly fivefold compared to the same period a year earlier. Net profit hit 33.38 billion yuan for the quarter, more than double what it earned in total in 2025.
The Wuhan-based company said its gross margin surged to 77% in the quarter from 35% in 2025, as average NAND selling prices soared due to explosive demand from AI. That demand has tightened supply across the NAND market, letting YMTC's factories run near full capacity and sell more chips at higher prices.
Counterpoint Research recently ranked YMTC No. 3 globally in NAND shipments, ahead of Kioxia, though it still trails Kioxia and Micron Technology in terms of revenue.
"We believe YMTC has transitioned from a 'domestic substitution play' into a 'top-3 global NAND platform'," analysts with China Merchants Securities wrote in a note.
YMTC plans to issue between roughly 2.0 billion and 2.4 billion new shares, representing 10% to 12% of its post-offering share capital, with an over-allotment option of up to 15%. The proceeds will be used to upgrade production lines and develop next-generation storage products.
The market expects the company to list next year. The planned listing will follow the blockbuster debut of Chinese memory chipmaker CXMT last month, which showed strong investor appetite for companies seen as central to China's semiconductor ambitions.
Analysts said a fundraising could help YMTC expand production and increase global NAND supply. However, research firm TrendForce cautioned that fresh industry capacity could push the NAND market into oversupply by late 2027, weighing on prices.
Geopolitics may also slow YMTC's longer-term growth. The company remains subject to U.S. restrictions that limit its access to certain American technologies.
Analysts said any future approval for major customers such as Apple to source memory chips from suppliers including YMTC could broaden supply options for electronics manufacturers and provide a significant boost to Chinese chipmakers.