Samsung Electronics and SK Hynix are reportedly upgrading factories in China to produce more advanced NAND memory amid AI demand. U.S. export restrictions and competition from manufacturers in China complicate the plans. Both chipmakers are pursuing NAND products with more than 200 layers.
Reuters reported, citing people familiar with the matter, that Samsung is converting Samsung's Xian factory to make 286-layer V9 NAND chips under a project named "Monami". Reuters reported that monthly production is expected to reach 5,000 wafers in December. Monthly production could rise to 40,000 wafers by December 2027.
SK Hynix plans to move Dalian production from 192-layer products to NAND chips containing at least 240 layers. SK Hynix may request U.S. permission to research products with more than 300 layers at Dalian. Both companies told Reuters that the upgrades are proceeding in consultation with Washington. Samsung said the project follows U.S. regulations. Samsung said the project neither increases capacity nor adds facilities.
U.S. restrictions require yearly licenses for some equipment from the United States that factories use in China. Whether regulators have approved all licenses needed for the planned upgrades remains undetermined. Samsung and SK Hynix did not immediately answer requests for comment.
Counterpoint Research said last week that Yangtze Memory Technologies Co. (YMTC) placed third worldwide by NAND shipment volume in the second quarter of 2026. Counterpoint Research ranked YMTC behind Samsung and SK Hynix but ahead of Kioxia and Micron Technology by shipment volume. Counterpoint Research said YMTC would have placed second if SK Hynix's Solidigm unit were excluded.
CXMT was reportedly preparing in September to enter NAND after securing nearly 10% of worldwide DRAM revenue, potentially challenging Micron and SanDisk. CXMT reportedly plans a NAND research and development line at a new factory in Beijing. CXMT has reportedly discussed the project with prospective customers, including an AI startup.
By last week, six major memory and storage chipmakers had collectively lost $1.09 trillion in market value since October 2 despite strong memory-chip demand. The companies were Micron, Samsung, SK Hynix, SanDisk, Western Digital and Kioxia Holdings. The sell-off reflects doubts about whether AI spending growth can continue. Competition from manufacturers in China, including YMTC in NAND, also contributed to the decline. Stronger-than-expected inflation figures renewed concerns about Federal Reserve rate increases.
Elon Musk warned that China could sharply increase RAM production by 2028, prompting concerns about future oversupply. South Korea faces particular exposure because semiconductors represent a large portion of South Korea's exports. D.A. Davidson analyst Gil Luria said competitive effects would likely weigh more heavily on Samsung and SK Hynix than on Micron.
Benzinga Pro data showed SK Hynix shares down 16.80% year-to-date. SK Hynix shares traded 3.46% higher at $144.62 during Wednesday's premarket session.
Samsung, SK Hynix Upgrade China Plants for Advanced NAND Chips Amid AI Demand
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Summary
Samsung and SK Hynix are upgrading their NAND production in China to 200+ layers amid AI demand surges. Samsung’s Xian plant will shift to 286-layer V9 NAND under the Monami project, targeting 5,000 wafers/month by 2026 and 40,000 by 2027. SK Hynix is moving Dalian to 240-layer chips and may seek U.S. approval for 300-layer R&D. Firms are coordinating with Washington, as some equipment needs annual licenses. YMTC ranked third in NAND shipments in Q2 2026. Market value for six top chipmakers dropped $1.09 trillion since October 2025, with altcoins to watch also showing signs of correction as fear and greed index shifts toward oversold levels.
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