Samsung Electronics and SK Hynix are upgrading their semiconductor manufacturing facilities in China to produce more advanced NAND memory chips, aiming to meet growing artificial intelligence (AI) demand and compete with China’s expanding chip industry.
Samsung plans to upgrade its facility in Xi’an to manufacture 286-layer V9 NAND chips, while SK Hynix is targeting production of NAND chips with 240 layers or more at its Dalian plant, according to people familiar with the plans.
The upgrades come as Chinese chipmaker Yangtze Memory Technologies (YMTC) gains ground in the domestic market. In the second quarter of 2026, YMTC captured 38.5% of China’s NAND market, ahead of Samsung at 33.5% and SK Hynix at 17%, according to research firm Omdia.
However, US export restrictions remain a major challenge. Both South Korean companies must obtain annual US licences to install certain American-made semiconductor equipment at their Chinese facilities, creating uncertainty around the planned upgrades.
Samsung said its upgrade complies with US export regulations and is intended to meet rising demand from global customers. The company added that it was not expanding production capacity or building new facilities.
The developments highlight the growing competition in the global memory-chip industry as manufacturers seek to supply AI data centres, computers and other devices requiring increasingly advanced storage technology.
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