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YMTC 3D NAND Flash. (Photo: YMTC Official Website) |
[Alpha Biz= Kim Jisun] Chinese NAND flash manufacturer Yangtze Memory Technologies Co. (YMTC) has filed a lawsuit in a U.S. court seeking to be removed from the U.S. Department of Defense’s (DoD) “Chinese Military-Connected Companies” (CMC) list, targeting the DoD and former Secretary of Defense Pete Hegseth.
According to Chinese media Caixin on December 11, YMTC was first added to the CMC list on January 31, 2024, and re-listed on January 7 this year. Companies on the CMC list face broad restrictions, including limitations on U.S. government subsidies, loans, contracts, and from 2026, the inability to enter contracts with the DoD.
YMTC reportedly attempted to communicate with the DoD for over 10 months via external law firms to understand the listing rationale and provide evidence that it does not meet the CMC criteria. After receiving no response, YMTC resorted to filing a lawsuit. YMTC asserted that it has no affiliation with the Chinese People’s Liberation Army (PLA), is neither owned nor controlled by the PLA, and does not qualify as a “military-civil fusion contributor” under U.S. regulations. The company also claimed that being listed as a CMC has caused business losses and posed a perceived national security threat.
Founded in July 2016 and headquartered in Wuhan, YMTC provides end-to-end NAND flash memory solutions, including 3D NAND, embedded memory chips, and consumer and enterprise SSDs. Following its addition to the U.S. export control entity list at the end of 2022, YMTC faced difficulties importing 128-layer or higher NAND flash production equipment from U.S. companies, prompting a push for domestic semiconductor equipment development.
YMTC held a 9% share of the global NAND flash market in Q2 2025, ranking sixth, and continues to expand its market presence through aggressive capital investments.
Other Chinese companies, including Xiaomi, Zhongwei Semiconductor (AMEC), and Huasai, have also filed lawsuits against the DoD over CMC listing issues. Xiaomi and AMEC were successfully removed from the list through U.S. court rulings, while Huasai’s case was dismissed.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
