{
  "id": 15850649,
  "title": "Exclusive-Samsung, SK Hynix upgrading China plants to make more advanced chips, people say",
  "url": "https://urgent.news/2026/10/21/exclusive-samsung-sk-hynix-upgrading-china-plants-to-make-more",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-10-21T05:36:21.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/exclusivesamsung-sk-hynix-upgrading-china-plants-to-make-more-advanced-chips-people-say-4961549"
  },
  "original_language": "en",
  "account": "Samsung Electronics and SK Hynix, two major South Korean semiconductor giants, are upgrading their factories in China to produce more advanced memory chips. According to four people familiar with the plans, the upgrades aim to counter competition from a rapidly growing Chinese rival and meet the increasing demand for AI technologies. However, the process has been complicated by US export controls and licensing requirements.\n\nBoth companies require US licenses annually to install US-made equipment, such as etching machines, in their Chinese factories. The US Commerce Department's Bureau of Industry and Security has stated that it does not intend to grant licenses for upgrading technology and expanding capacity at these facilities, which has limited the companies' ability to refit their plants and contributed to a loss of market share to a domestic competitor, Yangtze Memory Technologies Co (YMTC).\n\nIn response to the regulatory challenges, Samsung and SK Hynix have confirmed that upgrades are underway and are being done in consultation with Washington. However, they have not disclosed specific production plans. According to the sources, the companies are working to manufacture flash NAND memory chips with more than 200 layers, a feature that would bring their Chinese plants in line with production capabilities in South Korea. NAND memory chips, which retain data without power, are widely used in smartphones, PCs, and AI data centers.\n\nSamsung's plant in Xian, which accounts for about 40% of the company's global NAND output, currently produces chips with about 200 layers. The company is converting the facility to manufacture 286-layer V9 NAND chips, with an initial monthly output of 5,000 wafers in December 2023, rising to 40,000 wafers by December 2027. Samsung claims that the upgrade is in compliance with US export regulations, stating that it is not expanding production capacity or constructing new manufacturing facilities.\n\nSK Hynix aims to produce NAND products with 240 layers or more at its Dalian facilities in northeastern China. Currently, the company makes products with 192 layers at the site, which it acquired when it bought Intel's NAND operations in 2021. SK Hynix has acquired the permission to make chips with up to 240 layers at Dalian and may seek further authorization for 300-plus-layer chip production, potentially paving the way for future US production.\n\nThe US Bureau of Industry and Security has not provided explicit information on the status of approvals for Samsung and SK Hynix's upgrades. However, the bureau has indicated that it intends to grant license applications for the companies to operate their existing Chinese factories without expanding capacity or upgrading technology. As the South Korean chipmakers grapple with the question of how much to invest in their Chinese plants, YMTC has gained substantial market share. In the second quarter of 2025, YMTC commanded 38.5% of China's NAND market, up from 28% in 2024, surpassing Samsung's 33.5% share, which has since decreased to 17%.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Straits Times Business",
        "title": "Samsung, SK Hynix upgrading China plants to make more advanced chips: Sources",
        "url": "https://urgent.news/2026/10/21/samsung-sk-hynix-upgrading-china-plants-to-make-more-advanced-chips",
        "published": "2026-10-21T06:23:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}