Tech & AI
Samsung and SK Hynix upgrade China plants to make more advanced memory chips as YMTC gains ground
The South Korean chipmakers confirmed process upgrades at their Xi'an and Dalian factories, saying they are consulting closely with Washington.
HedgeWeekly Tech & AI Desk ·
Samsung Electronics and SK Hynix are upgrading their factories in China to produce more advanced NAND flash memory, the chips that store data in phones, PCs and AI-server solid-state drives, Reuters reported on Wednesday, citing four people familiar with the plans. Both companies confirmed the upgrades were under way and said they were in close consultation with the US government, though neither gave detailed production plans.
Samsung's plant in Xi'an, which makes about 40% of its global NAND output, is being converted from chips with around 200 layers to its 286-layer V9 generation; stacking more layers raises storage density and can cut cost per bit. Under a project known internally as Monami, output is targeted at 5,000 wafers a month by December 2026 and 40,000 by December 2027, according to one person. Samsung said it was not expanding capacity or building new facilities. SK Hynix plans to move its Dalian site, the sole NAND plant for its Solidigm unit, from 192 layers to 240 layers or more.
The upgrades come as China's Yangtze Memory Technologies Corp (YMTC) gains share at home. YMTC held 38.5% of China's NAND market in the second quarter, up from 28% for 2025, ahead of Samsung at 33.5% and SK Hynix at 17%, according to research firm Omdia cited by Reuters. The US Commerce Department's Bureau of Industry and Security said in 2025 that it did not intend to license technology upgrades or capacity expansion at the Korean firms' China plants, and Reuters could not determine how far equipment licences for this work had been granted.
Why it matters: AI data-centre demand has tightened memory supply, and newer NAND made in China would let both firms sell more competitive products while defending share against YMTC. The main risk is regulatory: the companies need annual US licences to bring American-made tools into China, so investors will watch for any response from Washington. Samsung and SK Hynix shares each closed about 6% higher on Wednesday, a session in which Korean chip stocks rallied broadly.