Chinese memory manufacturer YMTC has recently been added to the U.S. Department of Defense’s 1260H list, causing some complications for China’s top solid-state memory producer. However, the company firmly denies any association with the support of the Chinese military and has decried the U.S.’s actions as unjust and unfounded.
YMTC Denies Military Ties, Offers Dialogue
According to the South China Morning Post, YMTC representatives have refuted all claims of the company’s involvement in China’s defense procurement. In addition, they have indicated their readiness to negotiate their exclusion from the infamous 1260H list with Washington. The inclusion of YMTC in this list came as quite a surprise, as the company insists none of its products are suitable nor intended for defense application. None of YMTC’s customers have ever declared their intent to utilize the brand’s memory components for a military-grade technology.
YMTC Stands Firm
Furthermore, YMTC emphasizes its private company status, denying any ties with China’s defense department. It considers the allegations of posing a threat to American national security as baseless. If the company were to remain on the 1260H list, it could face not only the withdrawal of U.S. customers in the defense industry but also potential financial operations blockage beyond China by U.S. authorities.
Impact of U.S. Sanctions
YMTC has been under U.S. sanctions concerning the export of memory production technologies and equipment since December 2022. The imposed restrictions have forced the company to rely more on domestically produced equipment. The recent implementation of these new sanctions is likely due to significant investments in YMTC’s capital, supposedly received from state-supported funds in China.