China's Largest Memory Chip Maker Forced To Raise Capital Due To U.S. Blacklists

China’s Largest Memory Chip Maker Forced To Raise Capital Due To U.S. Blacklists

The Wuhan-based YMTC is central to the nation’s semiconductor self-sufficiency ambition.

ZeroHedgeTyler Durden

#ZeroHegde: "It appears as though Washington's chip controls on China are starting to make a profound impact.

Last December Washington added Yangtze Memory Technologies Corp. to its trade blacklist and now the company, China's largest memory chip maker, is being forced to raise 'billions of dollars' in new capital after burning through $7 billion over the past year, FT has reported. 

The company is also prohibited from procuring U.S. equipment to manufacture its chips, the report says. While Financial Times was unable to confirm the exact amount the company had to raise, they reported it was 'equivalent to billions of dollars'.

The Wuhan-based YMTC is central to the nation's semiconductor self-sufficiency ambition. Yet, since last fall, U.S. restrictions have limited its access to advanced chip tech. After a $7bn capital boost from backers like China's 'Big Fund' last year, the company has rapidly expended funds on equipment and new components."