Samsung and SK Hynix upgrading China plants to make more advanced chips
Samsung is aiming to produce 286-layer NAND chips at its Xi’an plant by 2027, while SK Hynix wants to make NAND chips with 240 or more layers at its Dalian facilities. The companies said upgrades are underway and are being done in close consultation with Washington.
1. China plant upgrades
Samsung Electronics and SK Hynix are upgrading their China factories to produce more advanced memory chips, people familiar with the plans said. Both companies confirmed that upgrades were underway and said they were being done in close consultation with Washington, without detailing their production plans.
2. Plans for NAND production
Samsung aims to convert its Xi’an plant to make 286-layer V9 NAND chips, targeting monthly output of 5,000 wafers in December this year and 40,000 wafers by December 2027, one person said. The plant currently makes chips with about 200 layers and accounts for about 40% of Samsung’s global NAND output. SK Hynix is looking to produce NAND with 240 or more layers at Dalian, where it currently makes 192-layer products, people familiar with the matter said.
3. Regulatory and market context
The companies need annual US licenses to install some US-made equipment in their Chinese factories. One person said SK Hynix may seek US permission to conduct research and development on chips with more than 300 layers at Dalian. In China’s NAND market, YMTC held 38.5% in the second quarter, while Samsung had 33.5% and SK Hynix 17%, according to Omdia.
