Samsung and SK Hynix Boost NAND Production Capacity in China! Accelerated Expansion in Xi'an and Dalian

Samsung Electronics (005930KS) and SK Hynix (000660KS) are simultaneously accelerating the expansion of NAND flash memory production capacity in China. The two South Korean memory giants plan to complete new rounds of equipment investments by early next year, targeting the growing demand for high-performance storage driven by artificial intelligence (AI) servers.

According to a report by ZDnet, Samsung Electronics has finalized the investment plan for its Xi'an factory's 9th-generation NAND conversion, along with a confirmed additional equipment investment scheme. The procurement orders for related equipment are expected to be finalized by the end of this year, with supplementary investments scheduled to begin in the second half of next year.

Samsung's 9th-generation NAND adopts a 280-layer stacked architecture, making it one of the most advanced NAND products currently available. This production line is expected to achieve a monthly wafer production capacity of 40,000 to 50,000 units.

To enhance the stability of 9th-generation NAND mass production, Samsung has recently further confirmed an additional investment plan, primarily focusing on etching process equipment. NAND requires stacking a large number of memory cells vertically, necessitating the etching of extremely deep channel holes on the wafer. This places high demands on the precision and processing depth of etching equipment.

Industry insiders reveal that Samsung plans to execute the supplementary investments in the second half of next year, with equipment procurement orders expected to be finalized by the end of this year.

Driven by the rapid growth in high-performance NAND demand from applications such as AI servers, Samsung will gradually expand advanced NAND production capacity in China in phases this year and next year.

Meanwhile, SK Hynix has been advancing equipment investments required for upgrading NAND products at its second factory in Dalian since the third quarter of this year. The planned production scale for this investment is approximately 30,000 wafers per month, with related investments expected to continue until next year.

This investment in the Dalian factory signifies that SK Hynix is further accelerating the establishment of NAND production capacity in China, echoing Samsung's expansion plans at its Xi'an factory.

Analysts point out that the consecutive expansion of production line investments in China by the two South Korean memory giants highlights the increasing importance of Chinese factories in their high-performance NAND product layouts.

With the acceleration of AI infrastructure development, the demand for high-performance NAND is rapidly increasing, becoming a key driver for this expansion plan. This is expected to further enhance the supply capabilities of high-end products for both companies.