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Samsung and SK Hynix are upgrading Chinese factories to produce advanced RAM chips as AI data center competition ramps up

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Samsung and SK Hynix are upgrading Chinese factories to produce advanced RAM chips as AI data center competition ramps up

The two biggest NAND flash memory manufacturers on the planet, Samsung Electronics and SK Hynix, are reportedly working to upgrade their Chinese factories to produce more advanced chips for use in AI data centers, Reuters reports. The move comes as the two companies continue to fight off competition from the fast-growing Chinese memory makers like CXMT. Fierce competition in the lucrative AI RAM market has already seen manufacturers slash consumer-focused production to allow them to increase production capacity for the more advanced — and money-spinning — components.

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Citing four people familiar with the companies' plans, the report claims that Samsung Electronics aims to switch its Xian plant to the production of 286-layer flash chips by the end of the year. SK Hynix has its sights set a little lower, targeting chips with 240 or more layers at its Dalian facility. That factory was taken over back in 2021, but a timescale for the new upgrades isn't clear.

S. regulations. Export controls on chipmaking equipment were applied in 2022, with the aim of slowing China's technological progress. -built hardware in Chinese factories. The report points to this as a reason for the recent growth of Chinese firms like Yangtze Memory Technologies Co. (YMTC). The company told investors at a recent IPO preparation meeting that it aims to become the world's largest NAND flash producer by the end of 2027.


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