Despite U.S. semiconductor sanctions, China is rapidly growing in the memory and foundry sectors based on its massive domestic market and government support. CXMT and YMTC are establishing themselves as major global players in the DRAM and NAND flash markets, respectively, and are also expanding their production capacity. China is also striving to localize core equipment such as EUV lithography machines, and has driven an increase in demand for semiconductors for data centers by riding the AI boom. However, it still lags behind South Korea and the United States by 2-3 years in cutting-edge processes, and faces significant challenges in the high bandwidth memory (HBM) sector.
