Chinese flash memory maker Yangtze Memory Technologies (YMTC) is receiving a US$7 billion cash injection to help keep the company going despite US pressure, according to reports.

YMTC was added to a US export control list in December 2022 (see YMTC could be out of 3D-NAND by 2024, says TrendForce) and this was considered likely to be a crippling blow as it could limit or prevent access to leading-edge chip manufacturing equipment.

The latest three investors have provided 49 billion yuan (US$7.1 billion), doubling YMTC’s registered capital to over 105 billion yuan, according to the South China Morning Post quoting data from Chinese business registry platform Tianyancha. One of the investors is state-controlled China Integrated Circuit Industry Investment Fund, otherwise known as The Big Fund.

The other two investors are Changjiang Industry Investment and Hubei Changsheng Development. While SCMP does not list the individual investments Bloomberg puts Chinese state’s direct contribution through The Big Fund at US$1.9 billion.

YMTC has risen rapidly to be on a par with other chipmakers in its ability to make 3D NAND flash memory. However, the addition of YMTC to the export control list and a general short-term oversupply in the memory sector led the company to implement lay-offs in January 2023 (see YMTC laying off 10 percent of workforce).

From October to February YMTC cut 70 percent of its orders with Naura Technology, one of China’s chipmaking equipment suppliers, the SCMP had previously reported.