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SK hynix and Samsung Electronics invested 1.5 trillion won in China memory plants to upgrade capacity
Wednesday, March 11, 2026 at 09:50 AM
SK hynix and Samsung Electronics collectively invested 1.5 trillion won in their Chinese memory manufacturing facilities during 2025. SK hynix spent over 1 trillion won, while Samsung contributed 465.4 billion won. These investments focus on upgrading production technology and increasing output within the constraints of South Korean regulations that prevent the transfer of EUV equipment and advanced manufacturing processes defined as being within two generations of the leading edge to China.
Context
South Korean chipmaking giants Samsung Electronics and SK Hynix invested a combined 1.5 trillion won (approximately $1.1 billion) in their Chinese memory facilities throughout 2023. These strategic expenditures aimed to upgrade production processes and boost output to combat a persistent global memory chip shortage and surging demand from AI data centers. Specifically, SK Hynix allocated over 1 trillion won to its Wuxi and Dalian sites, while Samsung invested 465.4 billion won in its Xi’an NAND flash plant.
While these investments modernize existing capacity, the companies face a complex regulatory environment as of March 2026. Although the U.S. government recently granted annual export licenses for 2026, the transition from the previous Validated End-User (VEU) waiver system to a more restrictive individual licensing framework creates long-term uncertainty. Additionally, South Korean regulations continue to prohibit the transfer of EUV lithography equipment and processes within two generations of the leading edge to China, limiting the technological ceiling of these facilities.
Sources (12)
[PDF] 2023 Business Report - SamsungCommerce Department Outlines Proposed National Security Guardrails for CHIPS for America Incentives Program | U.S. Department of CommerceSamsung, SK Hynix Pour 1.5 Trillion Won Into China Plants ...US tightens rules for Samsung, Intel, SK Hynix chip production in China | South China Morning PostU.S. approves Samsung, SK Hynix chipmaking tool shipments to China for 2026: ReutersU.S. grants Samsung and SK hynix 2026 licenses for chipmaking tool shipments to China — annual approvals replace dated waiver system | Tom's HardwareU.S. Export Waiver Revocations Put Samsung and SK hynix in Limbo - EE TimesIDC - Global Memory Shortage Crisis: Market Analysis and the Potential Impact on the Smartphone and PC Markets in 2026
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