Samsung Electronics and SK Hynix are upgrading their Chinese manufacturing facilities to boost NAND flash memory production. The companies aim to meet rising demand and counter the growing market presence of the Chinese competitor YMTC.
Samsung intends to transition its Xi'an plant from 200-layer memory to 286-layer V9 NAND chips. The company plans to increase output from 5,000 wafers per month by December 2026 to 40,000 wafers per month by the end of 2027.
SK Hynix is shifting its Dalian facility to produce NAND chips with 240 layers or more, moving up from its current 192-layer production. Both firms state they are coordinating these upgrades with US authorities, despite Washington's previous warnings against expanding capacity or upgrading technologies.
According to Omdia data for the second quarter of 2026, YMTC captured a 38.5% share of the Chinese NAND market. During the same period, Samsung's share fell to 33.5%, while SK Hynix dropped to 17%. YMTC is currently producing small batches of 294-layer memory and plans to exceed 300 layers.
