Wuhan Xinxin Semiconductor Manufacturing (XMC) has announced the establishment of Yangtze River Storage Technology (YRST), which will be formed with goverment subsidies and investments from several government-owned groups.

XMC will be wholly owned by YRST, which will draw two rounds of investments from China's National Integrated Circuit Industry Investment Fund, Hubei IC Industry Investment Fund, Hubei Science & Technology Investment Group and Tsinghua Unigroup, according to the statement.

XMC also disclosed the management team of YRST, headed by chaiman Zhao Weiguo (currently chairman for Tsinghua Unigroup) and vice chairman Wenwu Ding (currently president of China's National Semiconductor Industry Investment Fund). XMC CEO Simon Yang will serve as president of YRST, while XMC chairman Jizeng Wang will lead the board of supervisers at the company.

YRST will be built based on XMC's 12-inch IC R&D and manufacturing capability, and continue to develop XMC's presence in the memory-chip market and expand its business in the IoT field, according to the XMC.

According to DRAMeXchange, XMC is building a new memory fab with a monthly capacity of 200,000 wafers by 2018. XMC plans to produce 3D NAND flash products at the new fab. Currently, XMC produces mainly NOR flash products at a capacity of 20,000 wafers per month.