Samsung, SK Hynix upgrading China plants to make more advanced chips, people say: Reuters
Samsung and SK Hynix are upgrading China NAND plants to meet AI demand and counter YMTC, despite U.S. export-control constraints.
TL;DR
- Samsung and SK Hynix are upgrading their China factories to produce more advanced NAND memory chips with over 200 layers.
- These upgrades aim to meet growing AI demand and counter competition from Chinese rival Yangtze Memory Technologies Co (YMTC).
- The companies are operating under U.S. export controls, requiring annual licenses for U.S.-made chip-making equipment and limiting capacity expansion.
- Samsung is converting its Xian plant to produce 286-layer V9 NAND chips, while SK Hynix plans to switch its Dalian facility to produce 240-layer or more NAND products.
- YMTC has seen significant growth in China's NAND market, overtaking Samsung in market share.
- Both South Korean companies are in consultation with Washington regarding their upgrade plans.