Samsung and SK Hynix target next-generation NAND chips at China factories

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Samsung and SK Hynix advance memory chip

Highlights

Samsung targets 286-layer NAND production in China.
SK Hynix plans advanced upgrades at Dalian plants.
U.S. restrictions complicate chipmaking investments.

According to Reuters, both companies confirmed that factory upgrades are underway in consultation with U.S. authorities. Their plans involve producing NAND flash memory with more than 200 layers, although the extent of Washington's approval for the required equipment remains unclear.

Samsung and SK Hynix target advanced NAND production

Samsung is upgrading its facility in Xian, which accounts for approximately 40% of its global NAND production. The factory currently manufactures chips with around 200 layers and is being prepared to produce 286-layer V9 NAND under an internal project called Monami.

The company aims to reach monthly production of 5,000 wafers by December 2026, potentially increasing to 40,000 by December 2027. Samsung maintains that the work will modernize existing operations rather than increase manufacturing capacity or involve new facilities.

SK Hynix is pursuing similar improvements at its Dalian factories, where production currently centers on 192-layer NAND. The company plans to introduce products with at least 240 layers and is considering research involving chips exceeding 300 layers, subject to additional regulatory authorization.

U.S. export restrictions complicate factory upgrades

Both manufacturers face restrictions introduced as Washington seeks to limit China's access to advanced semiconductor technology. Since 2022, U.S. controls have complicated equipment purchases, while annual licensing requirements now apply to certain American-made manufacturing tools.

The U.S. Commerce Department has indicated that licenses should support continued operations at existing Chinese factories rather than technological upgrades or capacity expansion. That position creates uncertainty around the companies' plans, even as they confirm consultations with American regulators.

Meanwhile, Chinese manufacturer Yangtze Memory Technologies has gained ground. Its domestic NAND market share reached 38.5% in the second quarter, according to Omdia, compared with 28% during 2025. Samsung's share declined to 33.5%, while SK Hynix fell to 17%.

AI storage demand raises competitive stakes

The technological transition carries significant implications for semiconductor competition. Higher NAND layer counts allow manufacturers to increase storage density and reduce production costs, making advanced chips important for smartphones, computers, and AI data centers.

Outside China, Samsung already markets 286-layer NAND, while SK Hynix offers products with up to 321 layers. YMTC is also advancing its technology, including limited production of 294-layer chips and plans for more sophisticated designs.

For Samsung and SK Hynix, modernizing Chinese facilities is increasingly important to defending market share. Their ability to proceed will depend on regulatory approvals, technological execution, and competition from domestic manufacturers that are rapidly narrowing the gap.

We also reported that Samsung and SK Hynix plan massive AI chip investment in South Korea.

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