Samsung, SK Hynix Upgrade China Plants for Advanced NAND Despite US Export Curbs

Samsung Electronics and SK Hynix are upgrading their China factories to produce more advanced NAND memory chips, according to four people familiar with the plans, as they aim to fend off competition from China's YMTC and meet AI-driven demand. Samsung's Xian plant, which accounts for about 40% of its global NAND output, is converting to make 286-layer V9 chips under a project internally called "Monami," targeting 5,000 wafers per month in December and 40,000 by December 2027, one person said. SK Hynix plans to produce 240-layer or higher NAND at its Dalian site, up from 192 layers currently. Both companies require annual US licenses to install American-made equipment in China, and the Commerce Department's Bureau of Industry and Security said in 2025 it did not intend to grant licenses for technology upgrades or capacity expansion. Samsung said the upgrade complies with US export regulations and does not expand capacity. YMTC commanded 38.5% of China's NAND market in the second quarter, overtaking Samsung, whose share slipped to 33.5%, according to Omdia. SK Hynix's share fell to 17%.