Samsung and SK Hynix Upgrading China Plants to Produce More Advanced Chips
Samsung Electronics and SK Hynix are upgrading their semiconductor manufacturing facilities in China to produce more advanced memory chips, according to four sources. The upgrades aim to counter competition from Chinese rival Yangtze Memory Technologies (YMTC) and meet rising demand for AI-related applications. However, U.S.-imposed export controls on chip-making equipment since 2022 have complicated their efforts by requiring annual licenses for installing advanced tools in China. Samsung is converting its Xian plant to produce 286-layer V9 NAND chips with a target of scaling production from 5,000 wafers per month this year to 40,000 by December 2027. SK Hynix plans to increase layer counts at its Dalian facility from 192 layers to over 240 and may seek U.S. approval for R&D on chips with more than 300 layers. Both companies confirmed the upgrades are underway but provided no further production details. The regulatory environment has limited their ability to expand capacity in China, contributing to market share losses. Samsung emphasized that its upgrade is compliant with export rules and aimed at meeting global demand without expanding overall production.