The recent inclusion of the Chinese company YMTC in the so-called 1260H list by the American military will definitely create certain difficulties for the largest solid-state memory manufacturer in China, but he strongly denies his involvement in supporting the Chinese army and considers the steps of the American side unfair and groundless.
As the publication noted South China Morning Post, YMTC representatives not only denied any involvement of the company in fulfilling defense orders in China, but also announced their readiness to negotiate with Washington to exclude this memory manufacturer from the ill-fated 1260H list. For the company itself, the appearance of its name in this list was a complete surprise, and YMTC emphasizes that its products are not suitable for use in the defense sector in principle. None of YMTC’s clients have ever declared the use of memory from this brand to create defense equipment.
Moreover, YMTC emphasizes that it is a private company without any ties to the Chinese defense department, and considers all accusations that it poses a threat to American national security to be groundless. Inclusion in the 1260H list, as the source explains, potentially threatens YMTC not only with the refusal of American clients to cooperate in the defense sector, but also with the blocking of financial transactions outside China by relevant US authorities.
Since December 2022, YMTC has been subject to US sanctions regarding the export of memory technology and equipment from the country. Under such restrictions, the company had to actively purchase Chinese-made equipment. Most likely, the reason for new sanctions from the United States was large investments in YMTC capital, allegedly received from state-backed funds in China.