Samsung Electronics and SK Hynix are upgrading their factories in China to make more advanced NAND flash memory chips. The move aims to strengthen their position against Chinese rival Yangtze Memory Technologies (YMTC) and meet strong demand from AI data centers.
The upgrades are proceeding despite U.S. export controls that complicate the shipment of advanced American chipmaking equipment to China. Samsung plans to convert its Xi'an plant to produce 286-layer NAND by 2027. SK Hynix is shifting its Dalian facility to produce NAND with 240 or more layers. Both companies have confirmed the upgrades are underway in consultation with Washington.