Samsung and SK Hynix Upgrade China Plants for AI Chips

Samsung Electronics and SK Hynix are upgrading their manufacturing facilities in China to produce advanced NAND flash memory chips. The move aims to meet rising AI demand and reclaim market share from Chinese rival Yangtze Memory Technologies Co (YMTC), which has overtaken Samsung in the Chinese NAND market with a 38.5% share and is developing chips with over 300 layers.

Samsung is converting its plant in Xian to produce 286-layer V9 NAND chips, while SK Hynix is transitioning its Dalian site to produce chips with 240 layers or more. Both companies are conducting these upgrades in consultation with the United States government to ensure compliance with export controls.

The United States Department of Commerce Bureau of Industry and Security has previously stated it would not grant licenses to expand capacity or upgrade technology in China, though it permits the operation of existing factories. Samsung clarified that it is not expanding production capacity or constructing new facilities as part of these efforts.