Samsung, SK hynix Upgrade China NAND Plants to Counter Rising YMTC
Samsung Electronics and SK hynix are reportedly undertaking work to upgrade their Chinese plants to produce more advanced memory semiconductors. This is described as an effort to counter fast-growing Chinese competitors and respond to the massive demand for artificial intelligence (AI).Reuters repor
Samsung Electronics and SK hynix are reportedly upgrading their Chinese NAND flash memory plants to produce more advanced memory semiconductors with 200 layers or more, according to Reuters. This move aims to counter the growing influence of Chinese competitors, particularly Yangtze Memory Technologies Co. (YMTC), and meet the increasing demand for artificial intelligence (AI) applications.
Both companies are working closely with the U.S. government to obtain necessary export licenses for upgrading their Chinese plants. Samsung's Xi’an plant in northwest China currently produces about 40% of its total NAND production and is converting the facility to manufacture 286-layer 9th-generation (V9) NAND chips, with a target of 5,000 wafers per month and 40,000 wafers per month by the following year.
SK hynix aims to transition its Dalian plant in northeast China to produce NAND chips with 240 layers or more, currently making 192-layer products. The upgrades come amid escalating geopolitical tensions, which have led to tighter restrictions on foreign semiconductor companies expanding production capacity and upgrading technology in China.
YMTC has gained significant market share in China, reaching 38.5% in the second quarter of this year, compared to Samsung Electronics' 33.5% and SK hynix's 17%.
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