Key facts
- Samsung is converting its Xian facility to manufacture 286-layer V9 NAND chips.
- SK Hynix plans to transition its Dalian factory to produce chips with 240 layers or more.
- YMTC's share of global NAND revenue climbed to 14% in the first quarter.
- CXMT captured 10% of global DRAM revenue in the second quarter.
South Korean memory chip giants Samsung Electronics and SK Hynix are upgrading their manufacturing facilities in China to produce more advanced NAND flash memory. This strategic move aims to counter the rapidly expanding market share of Chinese rivals like Yangtze Memory Technologies Co (YMTC) and ChangXin Memory Technologies (CXMT), driven by the global artificial intelligence boom. The upgrades are being conducted in close consultation with US authorities, navigating complex export controls on specialized semiconductor equipment. SK Hynix reported a 632% surge in operating profit to 83.33 trillion won (US$62.76 billion) in the three months to September. Meanwhile, Chinese competitors are making significant inroads, with CXMT capturing 10% of global DRAM revenue in the second quarter and YMTC holding 14% of global NAND revenue in the first quarter.