Samsung, SK Hynix upgrading China plants to make more advanced chips
SMH•Samsung and SK Hynix are upgrading their China factories to produce more advanced NAND chips, including plans for Samsung’s Xi’an plant to reach 286-layer production by 2027 and SK Hynix’s Dalian site to make chips with 240 or more layers.
1. China plant upgrades
Samsung and SK Hynix are upgrading their Chinese factories to produce more advanced memory chips, four people familiar with the plans said. Both companies said upgrades were underway in consultation with the US government; they did not disclose production details.
2. Production targets
Samsung is converting its Xi’an plant, which accounts for about 40% of its global NAND output, to make 286-layer V9 chips. One person said the company is targeting monthly output of 5,000 wafers in December this year and 40,000 wafers by December 2027. SK Hynix is looking to make NAND chips with 240 or more layers at Dalian, where it currently makes 192-layer products; one person said it may seek US permission to conduct research and development on chips with more than 300 layers there.
3. Market and regulatory pressures
Both companies need annual US licenses to install certain US-made equipment in China. The article said the restrictions have limited factory upgrades and contributed to market-share losses to China’s Yangtze Memory Technologies, which held 38.5% of China’s NAND market in the second quarter, according to Omdia. Samsung and SK Hynix shares each ended 6% higher on Wednesday after the article was published.
