Key facts
- Samsung and SK Hynix are upgrading China plants to produce advanced NAND memory chips.
- Samsung aims to produce 286-layer V9 NAND chips in Xian, China.
- SK Hynix plans to produce 240-layer or more NAND chips in Dalian, China.
- YMTC has surpassed Samsung in China's NAND market share.
- US export controls limit upgrades and capacity expansion for foreign chipmakers in China.
Samsung Electronics and SK Hynix are upgrading their China factories to produce more advanced memory chips, according to four people familiar with the plans. The move aims to counter competition from Chinese rival Yangtze Memory Technologies Co (YMTC) and meet demand for AI data centers. However, US export controls on chip-making equipment, imposed in 2022, have complicated these efforts, requiring annual licenses for US-made equipment and limiting technology upgrades and capacity expansion.