Reuters: Samsung, SK Hynix upgrade Chinese factories to cope with Yangtze River storage competition BlockBeats news, October 21st, according to Reuters, Samsung Electronics and SK Hynix are upgrading their Chinese factories, planning to produce higher layer NAND flash memory chips to cope with the rapid development of Chinese competitor Changjiang Storage and meet the growing storage demand in the field of artificial intelligence. Both companies have confirmed to Reuters that they are undergoing relevant upgrades and stated that they are in close communication with the US side regarding the work, but have not disclosed specific production plans. Samsung plans to upgrade its factory in Xi'an, China to produce 286 layer V9 NAND flash memory chips. The factory currently mainly produces about 200 layers of chips, accounting for about 40% of Samsung's global NAND production. According to insiders, Samsung internally refers to this project as' Monami ', with the goal of achieving a monthly production of 5000 wafers by December 2026 and increasing the monthly production to 40000 wafers by December 2027. Samsung stated that this upgrade aims to meet the needs of global customers, including those in the United States, and does not involve expanding production capacity or building new manufacturing facilities. SK Hynix plans to upgrade its factory in Dalian, China to produce NAND products with 240 layers or more. Currently, the factory produces approximately 192 layers of products. According to informed sources, the company has been granted permission to produce chips with up to 240 layers in Dalian and may apply to the US government for research and development of chips with over 300 layers locally, laying the foundation for future production of related products in the United States. SK Hynix is also discussing plans with the Trump administration to build a new NAND factory in the United States. The report pointed out that the United States will implement export controls on some chip manufacturing equipment from 2022. If Samsung and SK Hynix want to install American made equipment in their Chinese factories, they need to apply for licenses every year. The Bureau of Industry and Security (BIS) of the US Department of Commerce previously stated that it plans to allow the two companies to continue operating their existing factories in China, but does not intend to approve applications to expand production capacity or upgrade technology. Reuters is unable to confirm to what extent the two companies have obtained approval for the equipment export license required for this upgrade. At the same time, Changjiang Storage's market share in the Chinese NAND market continues to rise. According to Omdia data, Changjiang Storage's market share in the Chinese NAND market reached 38.5% in the second quarter of 2026, higher than the 28% for the whole year of 2025 and surpassing Samsung. During the same period, Samsung's market share decreased from 36% to 33.5%, while SK Hynix's market share decreased from 20% to 17%. Changjiang Storage currently mainly produces 160 layer and 232 layer products, and has also produced a small amount of 294 layer chips, with plans to launch products with more than 300 layers. Currently, Samsung sells the highest 286 layer NAND chip in markets outside of China and showcased a prototype product with over 400 layers in August of this year; SK Hynix sells NAND chips with up to 321 layers. [Original link]