Chinese Chipmaker Sues Pentagon Over Military Designation
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Founded in 2016, Yangtze Memory Technologies Corp. is a key player in China’s quest for semiconductor self-sufficiency
Chinese memory-chip maker Yangtze Memory Technologies Corp. (YMTC) has sued the U.S. Department of Defense, seeking removal from the Pentagon’s “Chinese military company” (CMC) list after being designated twice without notice or a chance to respond.
According to the complaint filed on Dec. 5, the Defense Department first added Yangtze Memory to the CMC list on Jan. 31, 2024, and again on Jan. 7, 2025 — both times without prior notification or an opportunity for the company to contest the designation.
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- Yangtze Memory Technologies Corp. (YMTC) sued the U.S. Defense Department to be removed from the Pentagon’s “Chinese military company” list after being designated twice without notice.
- Placement on the list restricts access to U.S. contracts, with a full ban effective in 2026, and damages reputation and business.
- YMTC denies military ties, citing reputational and financial harm, and follows other Chinese firms that have legally contested similar U.S. designations.
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Who’s Who
- Yangtze Memory Technologies Corp.
- Yangtze Memory Technologies Corp. (YMTC) is a Chinese memory-chip maker that sued the U.S. Department of Defense for its inclusion on the "Chinese military company" (CMC) list. YMTC, founded in 2016, produces 3D NAND flash wafers and other memory products. The company denies having ties to China's military and claims reputational and financial harm from the designation.
- Xiaomi Corp.
- Xiaomi Corp. successfully sued for removal from the Pentagon's "Chinese Military Company" (CMC) list in 2021. This demonstrates that Chinese firms can challenge such designations, as Yangtze Memory Technologies Corp. is currently attempting to do.
- Advanced Micro-Fabrication Equipment Inc.
- Advanced Micro-Fabrication Equipment Inc. (identified as 中微半导体设备（上海）股份有限公司 in Chinese) was removed from the Pentagon's "Chinese military company" (CMC) list in 2024 after initiating a lawsuit. This indicates the company successfully challenged its designation, highlighting a precedent for other Chinese firms, such as Yangtze Memory Technologies Corp., pursuing similar legal action.
- Hesai Technology Co. Ltd.
- Hesai Technology Co. Ltd., a Chinese LiDAR maker, was added to the Pentagon's "Chinese military company" (CMC) list in January 2024. The company challenged this designation legally but lost its case in July 2025 and remains on the list.
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What Happened When
- 2016：
- Yangtze Memory Technologies Corp. (YMTC) was founded in Wuhan.
- December 2022：
- YMTC was added to the U.S. Commerce Department’s Entity List.
- January 2024：
- Hesai Technology and YMTC were among 17 Chinese companies added to the CMC list.
- January 31, 2024：
- YMTC was first added to the Pentagon’s Chinese military company (CMC) list.
- February 2024：
- Hesai Technology sued the Pentagon over its CMC designation.
- 2024：
- Advanced Micro-Fabrication Equipment Inc. was removed from the CMC list after filing suit.
- January 7, 2025：
- YMTC was added to the CMC list again.
- July 2025：
- A federal judge in Washington, D.C., dismissed Hesai Technology’s case and it remains designated as a CMC.
- By December 5, 2025：
- YMTC spent more than ten months attempting to engage with the U.S. Department of Defense through outside counsel.
- December 5, 2025：
- YMTC filed a lawsuit against the U.S. Department of Defense to seek removal from the CMC list.
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