Samsung, SK Hynix Upgrade China Plants for Advanced NAND Chips

Samsung Electronics and SK Hynix are upgrading their semiconductor plants in China to produce more advanced NAND flash memory chips, according to a Reuters report published on October 21, 2026. The projects come as demand for AI-related storage increases and Chinese chipmaker Yangtze Memory Technologies Co. (YMTC) strengthens its position in the domestic market.

Samsung plans to upgrade its Xi’an facility to produce 286-layer V9 NAND chips, moving beyond its current technology. The factory accounts for approximately 40 per cent of Samsung’s global NAND output, making it a critical part of the company’s memory supply chain.

SK Hynix is also planning upgrades at its Dalian facility, aiming to move from 192-layer NAND products towards chips with at least 240 layers. Further development could depend on US regulatory approval, Reuters reported, citing people familiar with the plans.

The upgrades reflect growing demand for high-capacity storage used in AI data centres, computers and enterprise systems. NAND technology stores data without requiring continuous power, while increasing the number of memory layers can improve storage density and reduce costs.

Competition is also intensifying. According to market figures cited by Reuters, YMTC increased its share of China’s NAND market to 38.5 per cent in the second quarter of 2026, up from 28 per cent for the whole of 2025. Samsung and SK Hynix recorded declining shares over the same comparison.

However, US export restrictions remain a significant obstacle. Washington has tightened licensing requirements for semiconductor equipment supplied to foreign-owned chip factories in China, with its stated policy opposing licences for capacity expansion and technology upgrades. Samsung and SK Hynix have said they are consulting with US authorities, but the full scope of approvals for the reported projects remains unclear.

The developments underscore the challenges facing global memory manufacturers as they balance demand for advanced chips, competition from Chinese producers and restrictions on semiconductor technology. The outcome could influence the supply and cost of storage products used across the expanding AI and computing industries.