News
Micron faces market pressure on concerns of YMTC DRAM oversupply
Saturday, January 24, 2026 at 09:45 AM
Micron shares are experiencing a sell-off due to market concerns that Chinese manufacturer YMTC is increasing DRAM supply significantly, potentially flooding the global market.
Context
China’s memory chip sector is witnessing a massive export surge, with domestic production capacity expanding rapidly despite ongoing trade restrictions. Leading local players like CXMT and YMTC have significantly increased their output of legacy DRAM and NAND, leading to a spike in global shipments. For investors in Micron and SK Hynix, this signifies a shifting competitive landscape as Chinese chips flood lower and mid-tier markets, potentially exerting downward pressure on average selling prices during the 2024 and 2025 market recovery cycles.
Recent trade data indicates that China’s semiconductor exports rose by nearly 20% in early 2024, with memory components serving as a primary driver of this volume. This trend is critical because it suggests that SK Hynix and Micron may face stiffer competition in non-AI-specific nodes where Chinese manufacturers are achieving massive scale. As China continues its push toward 70% chip self-sufficiency, market participants must monitor how this supply surge impacts global inventory levels and the long-term pricing power of traditional industry leaders.
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