In January 2024, the U.S. Department of Defense added Yangtze Memory Technologies to the list of "Chinese Military Companies" and reaffirmed this designation in early 2025. Additionally, in 2022, YMTC was placed on the "Entity List" by the U.S. Department of Commerce, which restricts its access to U.S. technology. These actions severely limited YMTC's cooperation with U.S. companies and technology, causing numerous obstacles in the international market.

Content and Demands of YMTC's Lawsuit

On December 5, 2025, YMTC filed lawsuits against both the U.S. Department of Defense and the Department of Commerce in the U.S. Federal Court in Washington. In the lawsuit against the Department of Defense, YMTC pointed out that its products are only used in consumer electronics such as laptops and mobile phones, and have no connection with the military or defense departments. YMTC emphasized that the U.S. Department of Defense's designation was based on "outdated and inaccurate information," which has caused "significant and ongoing financial and reputational damage" to YMTC, including business losses with U.S. partners.

In the lawsuit against the Department of Commerce, YMTC questioned its inclusion on the "Entity List" in 2022. YMTC asserted that it has a robust export compliance system and that the U.S. Department of Commerce has never accused it of violating U.S. export control laws.

Founded in 2016, YMTC focuses on the research, development, and mass production of 3D NAND flash memory and memory solutions. According to TrendForce data, in the first quarter of 2025, YMTC held an 8.1% share of the global NAND flash memory market (in terms of revenue), ranking sixth. In addition, YMTC has independently developed the "X-Tacking" (crystal stack) technology, which has achieved mass production of 3D NAND Flash with more than 232 layers of stacking and plans to develop high-bandwidth memory (HBM) based on this technology.

Impact of the Lawsuit

YMTC's lawsuit is not only a strong response to the U.S.'s unfair treatment but also an important measure to protect its own legal rights and interests. Previously, some Chinese companies have successfully overturned the U.S.'s "military-related" designation through legal means. For example, in 2021, Xiaomi was removed from the "Chinese Military Companies List" through litigation. The outcome of YMTC's lawsuit will have significant demonstrative significance for other Chinese companies.

Moreover, YMTC's lawsuit also reflects the complex situation of the global semiconductor industry under the influence of geopolitics. The U.S.'s unilateral sanctions have not only damaged the development of Chinese companies but also impacted the stability of the global industrial chain.

Future Outlook

The outcome of YMTC's lawsuit will have a profound impact on Sino-U.S. technological relations. If YMTC can successfully overturn the relevant designation through legal means, it will provide valuable experience and confidence for other Chinese companies. At the same time, it may also prompt the U.S. government to re-examine its sanctions policy against Chinese companies and promote the normalization of Sino-U.S. technological relations.

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