Wuhan recently released a major project plan for 2026, and a US$38 billion (approximately RMB 260 billion) storage semiconductor production expansion plan was announced.The expansion of production uses Yangtze Memory and Wuhan Xinxin as dual cores, focusing on the two major directions of 3D NAND and DRAM. Yangtze Memory's Phase III plant has entered the equipment debugging stage and is expected to be put into mass production by the end of 2026, with the phased goal of a monthly production capacity of 50,000 pieces achieved in 2027.
After Yangtze Memory's three new plants reach full production capacity, the total production capacity will increase by more than 100% compared with the current level. Shipment volume is expected to surpass SK Hynix and Micron, aiming to become the third largest NAND flash memory in the world, second only to Samsung and Kioxia.
Wuhan Xinxin is simultaneously advancing the third phase of production expansion, with a total investment of 28 billion yuan. Wuhan Xinxin is deeply involved in NOR Flash's unique technology and is the largest NOR Flash chip manufacturer in China. It currently has two 12-inch wafer fabs, each with a monthly production capacity of more than 30,000 pieces.
Behind the doubling of production capacity is the increased demand for memory chips from AI computing power. TrendForce’s latest data shows that a single AI server’s demand for DRAM is eight times that of a traditional server, and its demand for NAND Flash is three times.
Goldman Sachs predicts that the global DRAM supply and demand gap will reach 4.9% in 2026, the most serious in 15 years. It takes 12 to 18 months for original factory production capacity to increase, and the gap between supply and demand will be difficult to fill in the short term.
The price of memory chips has risen sharply due to the continued demand for AI, and the performance of industrial chain companies has been realized simultaneously. Among them, Baiwei Storage achieved operating income of 6.814 billion yuan in Q1 2026, a year-on-year increase of 341.53%; net profit attributable to the parent company was 2.899 billion yuan, equivalent to 3.3 times the net profit for the whole year of 2025.
