SK Hynix to boost its Chinese NAND production by 50% 2027 – report claims

SK Hynix reinvests in Dalian Fab 2 to boost its Chinese NAND production

SK Hynix has reportedly started reinvesting in Dalian Fab 2, a project it previously suspended during a memory downturn. Now, SK Hynix plans to have semiconductor production equipment installed at the site before the end of this year, with plans to start production in the first half of 2027. SK Hynix started reinvesting in this Chinese NAND fab earlier this year and completed construction.

This site will be controlled by Solidigm, an SK Hynix subsidiary. Solidigm is what SK Hynix called Intel’s former NAND buisness, which was sold to them in 2021. The site is expected to produce around 50,000 wafers per month, increasing overall production at the Dalian manufacturing site (Fabs 1 and 2) by 50%.

SK Hynix’s NAND strategy in China has its Dalian site create general-purpose NAND, with more advanced NAND technologies being produced in South Korea. This is partially due to equipment restrictions in China, which prevent SK Hynix from using advanced EUV equipment there. SK Hynix’s Dalian NAND production sites focus on 100-layer NAND using Intel’s (now Solidigm’s) Floating Gate NAND technology.

SK Hynix’s investment in its second Dalian Fab will generate increased NAND production within a relatively short timeframe. This will help alleviate shortages, stabilising the NAND flash market.

NAND flash supply constraints are expected to ease in 2027. That said, NAND prices are expected to remain high next year. Hopefully, this means that SSD prices will start returning to normal in late 2027 or 2028. However, you can bet that industry forces will do what they can to maintain high prices for as long as possible.

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