Report: Samsung Xi’an and SK Hynix Dalian Advance NAND Production Line Upgrades

According to Reuters, citing people familiar with the matter, Samsung Electronics and SK Hynix are upgrading their NAND flash production lines at factories in China. The goal is to raise stacking levels to above 200 layers, bringing the technology level of their Chinese plants closer to that of their South Korean facilities.

The upgrades are driven by two main factors. First, Yangtze Memory Technologies (YMTC) is rapidly gaining NAND market share, putting pressure on South Korean manufacturers. Second, demand for high-capacity NAND flash continues to grow, supported by AI servers, data centers, and enterprise SSDs.

According to CFM Insights, in the second quarter of 2026, Samsung held a 27.5% share of the global NAND Flash market, ranking first; SK Hynix held an 18.5% share, ranking second; and YMTC held a 15.0% share, ranking third.

Samsung’s Xi’an Plant: Shifting to 286-Layer V9 NAND

Samsung’s Xi’an plant accounts for about 40% of the company’s global NAND output and currently produces NAND chips at around the 200-layer level.

People familiar with the matter said Samsung is advancing an internal project codenamed “Monami” to convert the Xi’an plant to produce 286-layer V9 NAND. The company aims to reach a monthly output of 5,000 wafers by December 2026 and raise monthly capacity to 40,000 wafers by December 2027.

Samsung confirmed that the upgrade is underway and that it is in close consultation with the U.S. government. The company said the upgrade is intended to meet growing demand from global customers, including U.S. clients, and does not involve expanding capacity or building new production facilities.

SK Hynix’s Dalian Plant: Upgrading from 192 Layers to 240 Layers and Above

SK Hynix’s plant in Dalian currently produces 192-layer NAND products. People familiar with the matter said SK Hynix plans to shift the facility to produce NAND products at 240 layers and above.

The plant originated from SK Hynix’s 2021 acquisition of Intel’s NAND business and remains an important NAND manufacturing base for its Solidigm subsidiary.

Sources said SK Hynix has obtained approval to produce chips of up to 240 layers in Dalian and may seek further U.S. permission to conduct R&D on chips above 300 layers there, in preparation for potential future production in the United States.

SK Hynix said equipment installation at its Dalian plant is continuing and that it has communicated with the U.S. government on the matter, but it did not disclose specific production plans.

Regulatory Approval Remains a Key Variable

Since the United States tightened export controls on chipmaking equipment to China in 2022, Samsung and SK Hynix have been required to apply annually for licenses to install certain U.S.-made equipment at their Chinese factories. In 2025, the U.S. Bureau of Industry and Security (BIS) indicated that it was inclined to approve license applications necessary for foreign chipmakers to maintain existing factory operations in China, but did not intend to approve capacity expansion or technology upgrades.

The report said it remains unclear to what extent the United States has issued export licenses for the equipment needed for the planned upgrades. Whether the upgrades can proceed fully according to schedule will depend on U.S. approval of the relevant equipment export licenses.