As stated by sources from the semiconductor industry, Samsung's strategy appears directed toward blocking future patent conflicts associated with the hybrid bonding technique, a critical operation for mass production of 400-layer NAND memory.

Essentially, YMTC registered the hybrid bonding patent and was first into commercialization. The company operates at a disadvantage to global semiconductor behemoths such as Samsung Electronics and SK Hynix in terms of market share.

However, it has pressed forward quickly, having just initiated mass production of 294-layer NAND flash memory, one industry source stated. The agreement is likely to hedge both companies against patent infringement claims, they added. This is, however, not the first time a Chinese company has undertaken litigation over NAND technology.

YMTC, a firm founded in 2016 and owned by China's Tsinghua Unigroup, filed a patent lawsuit in a U.S. court against U.S. chip manufacturer Micron Technology, which it accuses of patent violations related to NAND. In the memory semiconductor business, licensing agreements are, one could say, a norm. In many instances, they are patterns that go on to protect future developers and manufacturers of next-generation products from getting into patent quarrels.

However, the narrowing technology gap between China and those leading global players, especially since Samsung, which has historically claimed the lion's share in the NAND flash market, has begun to use technology from a Chinese company, bring fresh worries, the industry analyst commented.

Some experts suggest that the ongoing U.S.-China trade tensions could limit YMTC's ability to sell memory components globally. Such a licensing or cross-licensing arrangement could provide YMTC with some degree of strategic benefits.