China's YMTC Makes Strides in Chip Production; Substitutes ASML, Lam Research Tech As US Sanctions Bite: Report

China’s Yangtze Memory Technologies Co accomplished some breakthroughs in substituting ASML Holding NV ASML and Lam Research Corporation LRCX chipmaking technology with domestic alternatives as U.S. sanctions take a toll on China’s artificial intelligence ambitions, Bloomberg cites TechInsights.

TechInsights analyst David Wei told Bloomberg in an interview that the memory maker leveraged gear from Advanced Micro-Fabrication Equipment Inc. China, Naura Technology Group and Piotech.

Geopolitical tensions have affected companies like YMTC and Huawei Technologies, as the U.S. restricted China’s access to advanced artificial intelligence chips and chipmaking machinery.

Though YMTC upgraded its “Xtacking” tech to help its NAND chip performance be at par with industry leaders Samsung Electronics Co SSNLF, Bloomberg cited from a research note. Still, the absence of advanced technologies from companies such as ASML and NVIDIA Corp NVDA continued to bite chipmakers like YMTC in the form of a lower production yield.

Chinese hyperscalers such as Alibaba Group Holding Ltd – ADR BABA voiced how the U.S. semiconductor embargo affected AI ambitions.

Meanwhile, the U.S. was in no mood to soften its stance against China as it collaborated with Japan to limit the export of chip technology to China.

Reports also indicated Nvidia AI chips were making their way into China via smuggling and other channels.

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