Samsung and SK Hynix are upgrading factories in China to make more complex chips. South Korean manufacturers expect to increase production of NAND memory for smartphones, computers and artificial intelligence data centers. Samsung plans to convert its factory in Xi'an to produce chips with 286 layers, and SK Hynix plans to produce products with more than 240 layers in Dalian. The prerequisite for innovation was the strengthening of the local competitor YMTC, which in the second quarter captured 38.5% of the Chinese NAND market. The modernization is taking place against the background of the US restrictions: companies must get annual licenses to install American equipment in China. At the same time, Washington has stated in the past that it is ready to allow the operation of existing factories, but not to expand their capabilities or update technology.

Samsung and SK Hynix are upgrading factories in China to make more complex chips. South Korean manufacturers expect to increase production of NAND memory for smartphones, computers and artificial intelligence data centers. Samsung plans to convert its factory in Xi'an to produce chips with 286 layers, and SK Hynix plans to produce products with more than 240 layers in Dalian. The prerequisite for innovation was the strengthening of the local competitor YMTC, which in the second quarter captured 38.5% of the Chinese NAND market. The modernization is taking place against the background of the US restrictions: companies must get annual licenses to install American equipment in China. At the same time, Washington has stated in the past that it is ready to allow the operation of existing factories, but not to expand their capabilities or update technology.