Samsung, SK Hynix upgrading China fabs to make advanced NAND chips - report

Samsung (SSNLF) and SK Hynix (SKHY) are upgrading their factories in China to produce more ​advanced memory chips, Reuters reported, citing people familiar with the plans.

The companies are working to manufacture flash NAND memory chips with over 200 ​layers at their Chinese plants. NAND is widely used in smartphones, PCs and solid-state drives.

Samsung's (SSNLF) factory in Xian, China currently makes chips with around ​200 layers and accounts for about 40% of its global NAND output.

The company is converting the plant to produce 286-layer V9 NAND chips, targeting a monthly output ​of 5,000 wafers in Dec. and 40,000 wafers by 2027-end.

"The upgrade is aimed at meeting growing ‌demand from global ⁠customers, including those in the U.S.," Samsung (SSNLF) told Reuters, adding that the upgrade complied with U.S. export rules. "The company is not expanding production capacity or constructing new manufacturing facilities."

Meanwhile, SK Hynix (SKHY) eyes producing NAND products with 240 layers or more at its facilities in Dalian, China, where it currently makes products with 192 layers.

The company may seek permission from ​the U.S. to conduct research and development on ⁠chips with 300+ layers in Dalian.

SK Hynix (SKHY) is also in talks with the Trump administration over plans to build a new NAND factory in the U.S.

The companies' upgrade plans come as they have been losing market share to Yangtze Memory Technologies Co (YMTC) in China.

YMTC's NAND market share in China reached 38.5% in Q2, up from 28% for all of 2025, according to research firm Omdia. Samsung's (SSNLF) share hit 33.5%, while that of SK Hynix (SKHY) fell to 17%.

To note, YMTC largely ⁠produces 160- and 232-layer NAND chips. It also makes a small number of 294-layer chips and plans to produce chips ​with over 300 layers, according to sources.