Samsung and SK SK Hynix confirm upgrades to Chinese NAND factories; equipment licensing status remains unclear

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Reuters: Samsung and SK SK Hynix upgrade Chinese factories to address competition from YMTC

BlockBeats News,October 21, according to Reuters, Samsung Electronics and SK SK Hynix are upgrading their factories in China, planning to produce higher-layer NAND flash memory chips to address the rapid growth of Chinese competitor YMTC and meet rising storage demand in the artificial intelligence sector. Both companies confirmed to Reuters that the relevant upgrades are underway and said they remain in close communication with the United States regarding the work, but did not disclose specific production plans.

Samsung plans to upgrade its factory in Xi'an, China, to produce 286-layer V9 NAND flash memory chips. The factory currently mainly produces chips with approximately 200 layers, accounting for approximately NAND of Samsung's global 40%production. According to people familiar with the matter, Samsung internally calls the project "Monami," with a target of achieving monthly output of 2026 Year December wafers in 5000 and increasing monthly output to 2027 Year December in 40000 wafers.

Samsung said the upgrade is intended to meet the needs of global customers, including U.S. customers, and does not involve expanding capacity or building new manufacturing facilities.SK SK Hynix plans to upgrade its factory in Dalian, China, to produce 240-layer and higher NAND products; the factory currently produces products of approximately 192 layers. According to people familiar with the matter, the company has been approved to produce chips with up to 240 layers in Dalian and may apply to the U.S. government to conduct R&D locally on chips with more than 300 layers, laying the groundwork for future production of related products in the United States.

SK SK Hynix is also discussing plans with the Trump administration to build a new NAND factory in the United States. The report noted that the United States has imposed export controls on certain chipmaking equipment since 2022, and Samsung and SK SK Hynix must apply annually for licenses to install U.S.-made equipment at their Chinese factories. The U.S. Department of Commerce's Bureau of Industry and Security (BIS) previously said it planned to allow the two companies to continue operating their existing Chinese factories, but did not intend to approve applications to expand capacity or upgrade technology. Reuters was unable to confirm the extent to which export licenses for the equipment needed for these upgrades had been approved.

Meanwhile, YMTC's share of China's NAND market continues to rise. Omdia data show that YMTC's share of China's 2026 market in the second quarter of NAND reached 38.5%, higher than 2025 for the full year 28%, and exceeded Samsung's. During the same period, Samsung's market share fell from 36%to 33.5%，SK, while SK Hynix's fell from 20%to 17%. YMTC currently mainly produces 160-layer and 232-layer products, has also produced a limited number of 294-layer chips, and plans to launch products with more than 300 layers. Samsung currently sells up to 286-layer NAND chips outside China and this year August showcased prototype products with more than 400 layers;SK SK Hynix sells up to 321-layer NAND chips.

Key points

Samsung Electronics and SK SK Hynix confirmed to Reuters that they are upgrading their Chinese factories and said they remain in close communication with the United States regarding the work, but did not disclose specific production plans.
Samsung plans to upgrade its Xi'an, China factory to produce 286-layer V9 NAND flash memory chips; the factory currently mainly produces approximately 200-layer chips, accounting for approximately NAND of Samsung's global production. 40%。
According to people familiar with the matter, Samsung internally calls the project "Monami," targeting 2026 Year December monthly wafers by 5000 and an increase to 2027 Year December wafers per month by 40000.
Samsung said the upgrade is intended to meet the needs of global customers, including U.S. customers, and does not involve expanding capacity or building new manufacturing facilities.
SK SK Hynix plans to upgrade its Dalian, China factory to produce 240-layer and higher NAND products; the factory currently produces products of approximately 192 layers.
According to people familiar with the matter,SK SK Hynix has been approved to produce chips with up to 240 layers in Dalian and may apply to conduct local R&D on 300-layer and higher chips.
The United States has imposed export controls on certain chipmaking equipment since 2022, and Samsung and SK SK Hynix must apply annually for licenses to install U.S.-made equipment at their Chinese factories.
Reuters was unable to confirm the extent to which export licenses for equipment required for the two companies' upgrades had been approved.
Omdia data show that YMTC's 2026 share of China's NAND market in the second quarter of 38.5%was 2025, higher than 28%for the full year 36%; during the same period, Samsung's share fell from 33.5%，SK to 20%, and SK Hynix's fell from 17%。

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

NAND is a type of flash memory chip. The “higher layer count” cited in reports refers to Samsung and SK SK hynix preparing to manufacture higher-layer-count NAND products at their Chinese plants. Both companies have confirmed that plant upgrades are under way, but specific production arrangements have not been disclosed, and the approval status of the required U.S. equipment export licenses also remains unclear.

Why it matters to readers

If the upgrades proceed as planned, Samsung and SK SK hynix will produce higher-layer-count NAND products in China; meanwhile, YMTC's share of the Chinese market is rising, while U.S. equipment export licenses continue to create uncertainty for project execution.

Beginners should focus on points: whether U.S. equipment export licenses are clarified, whether the companies disclose actual mass-production progress, and whether YMTC's higher-layer-count products and market share continue to change.

Risks and unknowns

Reuters was unable to confirm the extent to which equipment export licenses required for the upgrades have been approved.
Samsung's project name, monthly production target, and timetable came from people familiar with the matter and have not been publicly confirmed by the company.
SK SK hynix was authorized to produce up to 240-layer chips and may apply for R&D of 300-layer-and-above chips, according to people familiar with the matter.
The companies have not disclosed specific production plans.

Samsung and SK SK Hynix confirm upgrades to Chinese NAND factories; equipment licensing status remains unclear

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