Samsung and SK Hynix expand in China

The plans of Samsung and SK Hynix to develop their factories in China for the production of more advanced memory chips were discussed, aiming to confront competition from a rising Chinese startup and to meet the increasing demand for artificial intelligence technologies. The two companies face regulatory restrictions due to U.S. export controls imposed on manufacturing equipment to China since 2022, which require obtaining annual licenses and halt technological upgrades in foreign factories. Despite this, the companies are working to install “NAND flash” memory chips composed of over 200 layers in their Chinese factories, which are widely used in smartphones, computers, and data centers, though there are varying levels of technological development between factories in China and South Korea. The companies’ shares closed up by 6% following the news, although updates and expansion remain limited due to U.S. export restrictions.

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