Suddenly! Yangtze Memory Technology sues the U.S. Department of Defense!

The more ruthless the blockade, the more fierce the counterattack!

According to a Reuters report on December 8 (local time), Yangtze Memory Technology has filed a lawsuit with the U.S. Department of Defense, challenging its decision to be included in the list of entities suspected of cooperating with the Chinese military.

Yangtze Storage's lawsuit against the U.S. Department of Defense has become a landmark event for China's semiconductor industry to fight against the technology blockade.

In January 2024, the U.S. Department of Defense added it to the entity list on the grounds of "ties to the Chinese military" and prohibited it from importing advanced equipment containing U.S. technology, and after this determination was reaffirmed during the year, Yangtze Storage formally filed a lawsuit in federal court in Washington, D.C., in December, accusing the U.S. side of making decisions based on "outdated and inaccurate information", resulting in significant economic and reputational losses.

As a leader in China's NAND flash memory field, Yangtze Storage's market performance has angered the United States.

Its global market share reached 8.1% in the first quarter of this year, ranking sixth, while Omdia predicts that its annual factory investment will account for 20% of the global market.

Nikkei: Yangtze Memory Technology (NAND) market accounts for 13%, Changxin Storage (DRAM) 8%

What is even more alarming is that its technological progress has attracted Apple to consider adopting its memory, a breakthrough that has triggered U.S. regulators to step up their efforts to curb its development through administrative means.

In the face of the blockade, Yangtze Memory Technology broke the situation with independent innovation.

After the United States banned the export of NAND flash memory manufacturing equipment with more than 200 layers, the "X-Tacking" technology developed by it found another way to achieve breakthroughs through chip connection rather than stacking one by one.

At present, its X-Tacking 4 technology has applied hybrid bonding technology, and plans to develop HBM based on this technology to jointly lead China's storage industry with Changxin Storage.

But equipment bans are still the biggest shackle.

As NAND flash capacity increases, Yangtze Storage's demand for cutting-edge equipment has surged, and sanctions have hindered its large-scale investment.This lawsuit is not only to clear up false accusations, but also to fight for room for development.

As industry insiders said, this is not only a test of its technical strength, but also a microcosm of China's semiconductor industry's breakthrough in the blockade.