YMTC is aggressively pursuing domestic equipment adoption for its Phase III fab, aiming for an all-domestic production line for 3D NAND. However, this path is challenging due to issues with equipment integration stability, lower yields (around 62% compared to 81% with imported equipment), and increased manufacturing costs from techniques like dual-stacking to compensate for limited domestic lithography capabilities. This makes profitability difficult against competitors like Samsung and Micron, even with potential yield improvements in the future.