China is a growing presence in the NAND flash industry and is expected to play a pivotal role in supply and demand over the next two to three years, according to a new report.

According to research firm TrendForce, state-backed Tsinghua Unigroup has become a prominent example of the surge in Chinese deal-making in the semiconductor sector where the nation is filling production capability gaps with acquisitions and investments.

Tsinghua plans to buy a 15% stake in U.S. data storage company Western Digital (WD), a deal that indirectly allows access to the NAND flash industry from SanDisk’s merger with WD.

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