Business · Companies · 9 hrs ago
Samsung and SK Hynix plan upgrades to their China chip plants
Samsung and SK Hynix are upgrading NAND chip production at factories in China.
NAND flash chips store data in devices such as phones and computers, and in solid-state drives used by data centers.
The companies are responding to growing competition from Chinese chipmaker YMTC and demand linked to AI data centers.
Samsung plans to upgrade its Xi’an plant from chips with about 200 layers to 286-layer chips, starting with 5,000 wafers a month and aiming for 40,000 a month by December 2027.
SK Hynix’s Dalian plant currently makes 192-layer chips, and the company aims to move to 240 layers or more.
US export rules make upgrades harder because companies need permission to use US-made chip equipment in China, and the US said in 2025 it would not issue licenses for upgrades or capacity increases at foreign-owned chip plants there.
Both companies say they are consulting with US officials, and further upgrades depend on government approval.
Samsung Electronics and SK Hynix are upgrading their NAND chip factories in China to produce more advanced chips.
The plans come as the companies face growing competition from Chinese memory makers and rising demand linked to artificial intelligence.
Samsung plans to upgrade its Xi’an plant to produce 286-layer NAND chips, while SK Hynix is seeking to produce chips with 240 or more layers at its Dalian plant.
US export controls require licenses for some US-made equipment used in China, and US authorities said in 2025 they would not issue licenses for certain factory upgrades or capacity increases.
Samsung and SK Hynix say they are consulting with the US government about their work in China.
- Who
- Samsung Electronics and SK Hynix, South Korean chipmakers.
- What
- They are upgrading factories in China to produce more advanced NAND memory chips.
- When
- The plans were reported on October 21, 2026. Samsung aims to reach monthly output of 40,000 wafers by December 2027.
- Where
- Samsung’s factory in Xi’an and SK Hynix’s factory in Dalian, China.
- Why
- To respond to competition from Chinese memory makers and meet demand linked to artificial intelligence.
Samsung and SK Hynix
US authorities
Factory upgrades
Samsung and SK Hynix
The companies say their work is being carried out in consultation with the US government and within export controls.
US authorities
US authorities said in 2025 that they would not issue licenses for certain upgrades or capacity increases at foreign chipmakers’ factories in China.
Use of US-made equipment
Samsung and SK Hynix
The companies are continuing work at their Chinese plants, with Samsung saying its upgrades comply with US export controls.
US authorities
US rules require licenses to use some US-made semiconductor equipment in China.
The United States began imposing restrictions on exports of some chipmaking equipment.
The US Bureau of Industry and Security said it did not intend to grant licenses for technology upgrades or production-capacity increases at foreign chipmakers’ factories in China.
Reports detailed Samsung’s and SK Hynix’s plans to upgrade their Chinese NAND plants.
Samsung aims to produce 5,000 wafers a month at its Xi’an plant.
Samsung aims to raise output at Xi’an to 40,000 wafers a month.
- Samsung plant
- Xi’an, China
- Samsung upgrade target
- 286-layer NAND chips
- Samsung output target
- 5,000 wafers monthly by December 2026; 40,000 by December 2027
- SK Hynix plant
- Dalian, China
- SK Hynix current production
- 192-layer chips
- SK Hynix upgrade target
- 240 or more layers
4 sources
Samsung, SK Hynix upgrade China plants under U.S. export curbs
Samsung and SK Hynix are upgrading their NAND factories in China
Samsung and SK Hynix are upgrading Chinese factories to produce advanced RAM chips as AI data center competition ramps up
«سامسونغ» و«إس كي هاينكس» تطوران مصانعهما في الصين لإنتاج رقائق ذاكرة أكثر تقدماً
What people are saying
The upgrades are being carried out in close consultation with Washington.
The aim is to meet rising demand from customers around the world, including customers in the United States.
It continues to install equipment at its plant in Dalian, northeastern China, in consultation with the US government.