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Samsung and SK Hynix Expand NAND Production Capacity in China
Samsung Electronics and SK Hynix are set to enhance their NAND flash production capabilities in China through significant equipment investments. Both companies aim to strengthen their local production bases, with plans to continue these investments into next year. Samsung has been focusing on its Xi'an X2 production line, which is undergoing a V9 NAND conversion. This advanced process involves stacking approximately 280 layers and is projected to achieve a monthly production capacity of 40,000 to 50,000 wafers. To support this, Samsung has confirmed a supplementary investment plan that includes additional etching process equipment, with procurement orders expected to be finalized by the end of this year.
Meanwhile, SK Hynix is advancing its equipment investments at its Dalian Plant 2, which it acquired following its takeover of Intel's NAND division in 2020. Since the third quarter of this year, the company has been working on upgrades to increase production capacity to around 30,000 wafers per month. Key manufacturing equipment is scheduled to arrive next month, with deployment expected to be completed by the first half of next year. The expansion of Plant 2 was initially announced in 2022 but faced delays due to market conditions; however, the investment is now being revitalized.
Industry experts indicate that these developments are part of a broader strategy to expand advanced NAND capacity in China, driven by the increasing demand for high-end storage solutions, particularly in sectors such as artificial intelligence.
Source: KLEA News