Chinese YMTC Surpasses Micron and Kioxia in NAND Chip Shipments

Yangtze Memory Technologies Corp (YMTC), a Chinese memory manufacturer, has achieved a significant milestone by ranking third in global NAND flash memory shipments during the second quarter of 2026, according to recent data from Counterpoint Research. This development underscores China's growing prowess in the semiconductor sector and signals a shift in market dynamics as YMTC overtakes established players like Japan's Kioxia and US-based Micron.

YMTC's remarkable ascent was fueled by capitalizing on widespread global supply shortages and expanding its shipments to domestic Original Equipment Manufacturers (OEMs). The company has also been mass-producing 267-layer 3D NAND technology and accelerating its development of 300-plus-layer technology based on its Xtacking architecture. Counterpoint's data for Q2 2026 shows Samsung maintaining its lead with a 25% market share, followed by SK Hynix (including Solidigm) at 22%. YMTC secured the third spot with a 14% shipment share, moving ahead of Kioxia and Micron, which held a 13% share.

Despite its success in shipment volume, YMTC's revenue ranking remained at fifth place. This discrepancy is primarily due to the company's product portfolio being heavily concentrated in consumer applications, with less exposure to the higher-priced enterprise SSDs (eSSDs) used in data centers. This indicates that firms like Micron and Kioxia continue to generate higher NAND revenue, despite lower shipment volumes, thanks to their strong positions in the enterprise market.

The global NAND market is undergoing a significant transformation driven by the shift of artificial intelligence (AI) workloads from training to inference. This change is boosting demand for enterprise SSDs and reshaping the overall market structure. In Q2 2026, enterprise SSDs accounted for 48% of global NAND bit shipments, nearly doubling their 26% share from a year ago. This proportion is expected to exceed 50% by the end of 2026, highlighting the crucial role data centers will play in memory demand. Meanwhile, Samsung's prioritization of high-margin DRAM production led to a decrease in its NAND shipment share.

Market analysts suggest that YMTC aims to diversify its product portfolio by focusing more on the enterprise SSD market in the coming period. This transition is expected to be accelerated by expanded financial support from the Chinese government. Industry experts predict that until 2027, sector profitability will be determined by the types and quantities of products shipped, rather than just total shipment volume. This implies that YMTC's ability to strengthen its position in the high-margin enterprise market will be critical for increasing its revenues and solidifying its global market standing.