Applied Materials And Lam Research: Little Impact From Possible Demise Of China's NAND Industry

Jul. 19, 2021 4:07 PM ETApplied Materials, Inc. (AMAT), LRCX8 Comments


  • China's NAND memory company YMTC could reach nearly 10% of global NAND capacity in 2025.
  • YMTC's parent company Tsinghua Unigroup is declaring bankruptcy, which could impact funding of new fabs.
  • U.S. Commerce Department is being asked to blacklist YMTC, which could impact its ability to buy processing equipment.
  • Applied Materials and Lam Research generated an estimated $6.2 billion in revenues from NAND manufacturers in 2020 and $740 million to YMTC.
  • Even with the possible shutdown of China's NAND memory industry, there will be minimal impact on equipment suppliers.
  • This idea was discussed in more depth with members of my private investing community, Semiconductor Deep Dive. Learn More »

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Current State of China Memory Semiconductor Industry

China has been making strides to decrease its dependence on foreign companies who make semiconductors. According to our report entitled "Mainland China's Semiconductor and Equipment Markets: Analysis and Manufacturing Trends," China imported

This free article presents my analysis of this semiconductor equipment sector. A more detailed analysis is available on my Marketplace newsletter site Semiconductor Deep Dive. You can learn more about it here and start a risk free 2 week trial now.

In my Semiconductor Deep Dive Marketplace newsletter, I also discussed the impact of the demise of YMTC on NAND memory maker Micron Technology (MU).

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