AsianFin -- China’s leading flash memory manufacturer, Yangtze Memory Technologies Co. (YMTC), is planning to expand into DRAM production, including advanced chips used for artificial intelligence (AI) applications, sources familiar with the matter told Reuters.

The state-backed firm’s move highlights Beijing’s growing push to strengthen its domestic production of advanced semiconductors following U.S. export controls imposed in December that restrict China’s access to high-bandwidth memory (HBM), a specialized type of DRAM essential for AI chipsets.

The export restrictions have intensified the need for locally produced HBM chips as Chinese tech giants—including Huawei and ByteDance—develop their own AI processors, according to industry insiders and analysts.