{
  "id": 15881083,
  "title": "Samsung and SK Hynix are upgrading Chinese factories to produce advanced RAM chips as AI data center competition ramps up",
  "url": "https://urgent.news/2026/10/21/samsung-and-sk-hynix-are-upgrading-chinese-factories-to-produce",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-21T11:49:44.000Z",
  "source": {
    "name": "Tom's Hardware",
    "slug": "tom-s-hardware",
    "url": "https://www.tomshardware.com/pc-components/dram/samsung-and-sk-hynix-are-upgrading-chinese-factories-to-produce-advanced-ram-chips-as-ai-data-center-competition-ramps-up-big-players-move-to-fight-off-the-threat-from-cxmt-and-co"
  },
  "original_language": "en",
  "account": "Samsung Electronics and SK Hynix, the world's leading NAND flash memory manufacturers, are set to upgrade their Chinese factories for producing advanced chips used in AI data centers, according to Reuters. This strategic move aims to counteract competition from rising Chinese memory producers such as CXMT. The intensified competition in the lucrative AI RAM market has prompted both companies to reduce production of consumer-focused components to focus on generating revenue from more sophisticated components.\n\nThe report cites four sources familiar with the companies' plans, revealing that Samsung plans to transform its Xian plant to manufacture 286-layer flash chips by the end of the year. SK Hynix intends to focus on producing chips with 240 or more layers at its Dalian facility. Notably, SK Hynix's Dalian factory was acquired in 2021, though the timeline for the new upgrades remains unspecified. Despite being well-positioned to tackle the growing threat of Chinese chipmakers, both companies face additional challenges due to U.S. regulations. In 2022, the U.S. imposed export controls on chipmaking equipment, aiming to slow down China's technological advancements. Consequently, both Samsung and SK Hynix must secure licenses to install U.S.-built hardware in Chinese factories, potentially complicating their upgrade efforts.\n\nThe competition is particularly fierce in the AI RAM market, where manufacturers have already cut back on consumer-focused production to concentrate on more advanced and lucrative components. The significance of Samsung and SK Hynix in the NAND supply chain cannot be overstated. Samsung's Xian factory contributes around 40% of the company's global output, currently producing chips with around 200 layers. The company's ambitions extend beyond this, with plans to increase the layer count to 286 for V9 NAND chips. SK Hynix's Dalian plant, meanwhile, produces chips with 192 layers, with ambitions to reach 240-layer chips.\n\nWhile Chinese chipmaker CXMT is expanding its production capabilities, it currently lags behind industry giants Samsung, SK Hynix, and Micron. CXMT, the largest DRAM producer in China, reported $22.41 billion in revenue and $11.57 billion in net profit in the first half of 2026, demonstrating a turnaround from previous years of losses. Nonetheless, CXMT remains significantly smaller than its global competitors.",
  "summary": "Samsung and SK Hynix are reportedly upgrading their factories to produce more advanced RAM chips designed for AI data centers in an attempt to fend off competition from Chinese companies.",
  "key_points": [
    "Samsung and SK Hynix upgrading Chinese factories for advanced RAM chips",
    "Samsung to produce 286-layer flash chips at Xian plant by year-end",
    "SK Hynix focuses on 240+ layer chips at Dalian facility"
  ],
  "editors_take": "Shifting production from consumer components to high-layer flash chips allows these industry leaders to defend their market dominance against rising Chinese competitors despite the complications of American export controls.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "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."
}