Samsung and SK Hynix Push NAND Upgrades in China as YMTC Gains Ground

China’s NAND flash market is entering a more competitive phase as local champion YMTC strengthens its position, prompting two of the industry’s biggest Korean manufacturers to modernize their Chinese operations.

Market data cited in the report shows YMTC becoming China’s largest NAND flash supplier this year with a 38.5% share, rising from 28% a year earlier. The gain allowed YMTC to move ahead of Samsung, whose share slipped from 36% to 33.5%, and SK Hynix, which fell from 20% to 17%.

To defend its standing, Samsung is preparing upgrades at its major NAND facility in Xi’an, China. The site is responsible for roughly 40% of Samsung’s worldwide NAND production capacity, but it currently focuses on older technology with approximately 200 layers. More layers generally allow more data to be stored on each chip.

According to Reuters, Samsung is converting the Xi’an plant to produce NAND V9 chips featuring 286 layers. The rollout is expected to begin modestly, with about 5,000 wafers planned by the end of this year, before expanding sharply to around 40,000 wafers by the end of 2027.

Even so, V9 is not Samsung’s latest NAND technology. The company previously introduced NAND V10, which offers more than 400 layers and improvements such as faster speeds and better power efficiency.

SK Hynix is also working to strengthen its Chinese manufacturing base through its plant in Dalian. The facility was formerly owned by Intel and was later transferred and operated under the Solidigm brand. Solidigm has been considering a NASDAQ listing, though the plan has reportedly encountered resistance from shareholders and regulators.

Export rules remain a key factor for foreign chipmakers expanding production in China. Companies seeking to install US-made semiconductor equipment must obtain approval from the Bureau of Industry and Security, part of the US Department of Commerce. The bureau has said it would not grant licenses for expansion or upgrades at foreign-owned chip factories in China in 2025.

Despite those restrictions, SK Hynix’s Dalian site is currently producing 192-layer chips and is said to have received US approval to move to 240-layer production. The company may also pursue chips with more than 300 layers if further permissions are granted. In addition, SK Hynix is discussing the possibility of establishing NAND production in the United States with Intel’s support, a move that could improve its regulatory position.