Samsung and SK Hynix are upgrading their Chinese manufacturing capabilities to produce more advanced NAND memory chips, specifically targeting 286-layer and 240-layer chips, respectively. This initiative comes as they face increasing competition from YMTC, which has gained significant market share in China, rising to 38.5% in the second quarter of 2026.
The U.S. government's export controls, which require annual licenses for U.S.-made equipment, have created challenges for these South Korean firms, limiting their ability to upgrade technology and expand capacity. Samsung's Xian plant, responsible for 40% of its global NAND output, is set to increase production from 5,000 wafers per month in December 2026 to 40,000 by December 2027.
Meanwhile, SK Hynix is looking to enhance its Dalian facility, which currently produces 192-layer chips, to manufacture products with 240 layers or more. Both companies are navigating a complex regulatory landscape while trying to maintain competitiveness in the rapidly evolving semiconductor market