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China-related semiconductor controls do not ban every memory chip. They target the equipment, software, high-bandwidth memory (HBM), technical support and manufacturing capacity needed to produce the most advanced DRAM and NAND. The result is a widening gap between China’s ability to ship usable, mature memory and its ability to expand at the leading edge. YMTC and CXMT face the most direct technology constraints; Micron faces Chinese procurement restrictions; Samsung and SK hynix face licensing and supply-chain uncertainty affecting their China operations.

What the export controls cover

The United States uses several overlapping controls rather than one blanket prohibition. The rules focus on where a chip is made, how advanced the manufacturing process is, which tools and software are used, and who may provide technical assistance.

October 2022: advanced DRAM and NAND thresholds

The Bureau of Industry and Security (BIS) added license requirements for facilities in China producing DRAM at 18-nanometer half-pitch or less and NAND at 128 layers or more. These thresholds identify advanced production capability, not every memory product made in China. A Chinese plant can continue making less-advanced memory if it can obtain the required inputs and comply with applicable licenses.

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The same package restricted certain U.S.-person support for covered semiconductor manufacturing in China and broadened controls on foreign-produced items. That matters because a company may be headquartered outside the United States yet still depend on U.S. software, components, engineering support or equipment made under rules that invoke U.S. jurisdiction.

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December 2, 2024: equipment, software, HBM and Entity List expansion

BIS added controls covering 24 semiconductor-manufacturing equipment categories, three software-tool categories, and HBM. It also added 140 entities to the Entity List. Listed companies face license requirements for specified exports, and licenses are not guaranteed.

The practical effect is broader than blocking one machine. Memory fabs require a chain of deposition, lithography, etch, clean, metrology, inspection, packaging and process-control tools, plus electronic-design and manufacturing software. Losing access to one critical category can delay an entire production line, force redesigns or reduce achievable yields.

Why HBM receives special attention

HBM stacks multiple DRAM dies and connects them to advanced processors through very wide interfaces. It therefore depends on capable DRAM production, fine-pitch interconnects, advanced packaging and demanding testing. Controls on HBM can constrain both the memory die and the packaging ecosystem, making it harder for a company to compete in artificial-intelligence accelerators even if it can still sell conventional DRAM.

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Company-by-company effects

Company Main exposure Documented effect Strategic constraint
YMTC NAND flash Added to the Entity List in December 2022; ITIF reported a 10% workforce reduction and lower equipment procurement and expansion plans. Can produce usable NAND, but restricted access to tools makes leading-edge layer increases and capacity growth harder.
CXMT DRAM and emerging HBM Described by ITIF as China’s DRAM workhorse facing significant roadmap-execution challenges. Domestic HBM efforts start from a DRAM technology position that trails global rivals.
Micron DRAM, NAND and other memory China barred critical-infrastructure operators from procuring Micron products after a 2023 cybersecurity review. Lost or risks losing some Chinese demand; fiscal 2022 China revenue was nearly 11% of total revenue.
Samsung DRAM, NAND and HBM China-related authorization changes create uncertainty for its China semiconductor operations and equipment flows. Must balance access to Chinese production and customers with U.S. and allied controls.
SK hynix DRAM, NAND and HBM Its China operation was among the entities discussed in connection with removal from a U.S. VEU authorization list. Licensing and tool availability can affect the pace and configuration of China-based production.

The table describes different kinds of exposure. Chinese firms are primarily constrained on the supply side: they need controlled tools, software and expertise. U.S. and South Korean firms are exposed on the demand, licensing and operational sides: they may have products or factories in China but face procurement decisions and authorization changes.

YMTC: NAND capacity without unrestricted expansion

YMTC was placed on the U.S. Entity List in December 2022. ITIF reported that the company subsequently laid off 10% of its staff and reduced equipment procurement and expansion plans. Those measures indicate how controls can affect a company before a factory is physically shut down: planned tools become harder to purchase, expansion schedules become less certain, and engineering resources may be redirected to sustaining existing lines.

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YMTC had reached about 5% of global NAND market share in 2021, according to ITIF, and had been on a path to exceed 10% by 2027. Those figures describe the trajectory available before the full effect of tool restrictions; they should not be treated as current 2026 market share. The same account says YMTC remained capable of producing usable memory despite the restrictions.

What the constraint means technically

NAND competitiveness depends on more than the number of wafer starts. Increasing layer counts requires repeatable deposition and etch, precise alignment, high-yield process control and reliable inspection. If a company cannot obtain the newest versions of those tools, it may keep shipping an existing generation while falling behind in density, cost per bit, power efficiency or yield. That creates a two-speed business: mature products generate revenue, while the next generation takes longer and costs more to qualify.

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CXMT: DRAM progress and the HBM hurdle

ITIF describes CXMT as China’s DRAM workhorse. Its central challenge is roadmap execution: moving from a domestic DRAM base to competitive, high-volume generations while access to advanced manufacturing equipment and software is restricted.

HBM raises the difficulty. Analyst Dan Wang summarized the problem: When your DRAM technology already lags behind global rivals, that puts your HBM technology at a disadvantage to be competitive in a fully commercial market … It’s not that easy for China’s national champion to break the international dominance in the sector. Its primary objective remains fulfilling China’s domestic demand.

This does not mean CXMT cannot make HBM prototypes or supply limited domestic applications. It means commercial competition requires more than a demonstration part: consistent die quality, high bandwidth, advanced packaging, thermal management, testing and enough output for accelerator makers. Controls increase the time and expense required to build that complete chain.

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Micron: direct exposure to Chinese procurement restrictions

On May 21, 2023, China’s Cyberspace Administration determined that Micron memory chips posed significant security risks and barred Chinese critical-infrastructure operators from procuring them. The measure targeted a class of customers rather than every Chinese buyer, so it was not an across-the-board prohibition on all Micron sales in China.

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The U.S.-China Economic and Security Review Commission recorded that China represented nearly 11% of Micron’s fiscal-2022 revenue. That is a material exposure, but the same assessment judged the immediate effect on Chinese companies to be limited because Samsung and SK hynix sold similar memory in the market. Substitution therefore reduced the short-term supply shock while increasing competitive and geopolitical pressure on all three suppliers.

Why Micron’s experience matters to other suppliers

Micron demonstrates that controls can operate in both directions. U.S. restrictions limit China’s access to production capability, while China can use cybersecurity reviews and procurement rules to limit access to foreign memory. A supplier with modest Chinese revenue may absorb the impact; a supplier with a large local customer base or China-based manufacturing footprint faces a more complicated adjustment.

Samsung and SK hynix: operating under authorization uncertainty

Samsung and SK hynix are not Chinese companies, but both have substantial commercial and manufacturing links with China. Their risk is therefore less about being unable to sell any memory and more about whether China-based facilities can receive tools, upgrades, software support and replacement parts on the expected schedule.

MOFCOM said that U.S. removal of Intel Dalian, Samsung China Semiconductor and SK hynix China from the VEU authorization list would damage global supply-chain stability and stated that China opposed the move. A VEU authorization is an export-control mechanism; its availability, scope and conditions can change. Any change can require a company to seek individual licenses, adjust tool shipments or alter production plans.

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For Samsung and SK hynix, the operational question is plant-specific. A China facility making mature products may continue operating, while a planned node transition or capacity expansion is delayed. Companies can also shift certain products or process steps to facilities in other countries, but that requires qualification, capital and time.

China’s countermeasures add upstream and downstream risk

Gallium and germanium controls

The USCC recorded China’s 2023 export controls on gallium and germanium. Shipments paused while exporters sought dual-use licenses. These materials are used across semiconductor and electronics supply chains, so licensing friction can raise lead times and inventory requirements even when a memory maker is not directly targeted.

Procurement restrictions and market access

China’s action against Micron shows the downstream side of the dispute: domestic critical-infrastructure buyers may be directed away from a foreign supplier. MOFCOM presents U.S. controls as destabilizing an interconnected global industry and says China will take necessary measures to protect Chinese firms. The combination of technology-access limits and procurement restrictions encourages companies to qualify alternative suppliers and hold more safety stock.

How to compare a memory company’s exposure

Five questions provide a more useful assessment than simply asking whether a company is on an Entity List.

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  1. Which memory is involved? NAND, conventional DRAM and HBM have different process, packaging and customer requirements. HBM is generally the most exposed to leading-edge capability constraints.
  2. How advanced is the process? The 18nm half-pitch DRAM and 128-layer NAND thresholds identify production that falls within the 2022 controls. A company may still ship mature generations outside those thresholds.
  3. Which suppliers provide the tools and software? Dependence can involve U.S., Japanese, Dutch or other allied vendors. The relevant issue is not the supplier’s headquarters alone, but whether a product falls under applicable export rules.
  4. How concentrated are revenue and customers in China? Micron’s nearly 11% fiscal-2022 China revenue illustrates why a procurement restriction can matter even when global demand remains available.
  5. Can domestic equipment and materials substitute? Substitution may preserve output but not immediately match throughput, precision, yield or total cost. Qualification of a local replacement can take multiple production cycles.
Exposure pattern Likely near-term result Longer-term consequence
Advanced Chinese fab dependent on controlled tools Delayed deliveries, license applications and slower capacity expansion Higher cost per bit and a larger gap at leading-edge nodes
Foreign supplier with China-based factory Uncertainty over upgrades, maintenance and authorizations Product migration to other sites or a less advanced local mix
Foreign supplier selling into China Customer restrictions or substitution by rivals Reduced China share and more diversified sales channels
Company dependent on controlled upstream materials License-related delays and inventory buildup Alternative sourcing, recycling and redesign investment

Will export controls stop China from making NAND, DRAM or HBM?

No—not completely. The evidence supports a more specific conclusion: controls make advanced production harder, slower and more expensive, while mature production can continue. YMTC has remained capable of producing usable NAND, and CXMT’s domestic DRAM effort continues even though its roadmap and HBM ambitions face substantial obstacles.

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Controls are most effective when a product depends on a narrow set of highly specialized tools, software and process know-how. They are less decisive for older generations that use equipment already installed or available through non-controlled channels. Over time, China can narrow the gap by developing domestic tools, redesigning processes, stockpiling components and concentrating resources on domestic demand. Those responses may improve resilience without immediately producing a globally competitive leading-edge alternative.

Market-share figures and what they do—and do not—show

TrendForce figures reported by ITIF projected China’s NAND share at 31% in 2023 and 18% in 2024, and China’s DRAM share at 15% in 2022 and 12% in 2025. These are dated projections, not measured 2026 results, and the different years and methodologies make direct comparisons difficult. They are useful for illustrating expected direction, not for estimating current company revenue or capacity.

A falling projected share does not necessarily mean production stopped. It can mean global competitors expanded faster, Chinese firms delayed new fabs, or output remained concentrated in mature products while the market moved to newer generations.

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What to watch next

  • Changes to BIS licensing rules, controlled equipment categories, software controls, HBM coverage or Entity List entries.
  • Whether VEU or similar authorizations for China-based facilities are renewed, narrowed or replaced by individual licenses.
  • Actual qualification and yield data for Chinese-made deposition, etch, lithography, metrology, packaging and testing equipment.
  • Further Chinese procurement decisions affecting foreign memory suppliers and critical-infrastructure buyers.
  • Export-license processing times for gallium, germanium and other controlled upstream materials.
  • Whether CXMT can move from domestic DRAM supply to reliable, commercial-scale HBM with competitive packaging and yields.
  • Whether YMTC can increase NAND layers and capacity without unrestricted access to the newest tools.

Conclusion

China-related semiconductor export controls are a bottleneck strategy, not a universal memory-chip embargo. They restrict the inputs that determine leading-edge capability, slow expansion and raise costs for YMTC and CXMT, while exposing Micron, Samsung and SK hynix to Chinese procurement actions and changing U.S. authorizations. China can continue making useful NAND and DRAM, but the available evidence points to a larger and more persistent disadvantage in advanced NAND, leading-edge DRAM and especially HBM. Because Entity List status, licenses, company capacity and procurement rules can change, any 2026 assessment should verify those items separately rather than treating the 2022–2024 measures as permanent or complete.

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