[News] SK hynix Reportedly Restarts Dalian Fab 2, Targets 1H27 Mass Production and 50% China NAND Capacity Boost
SK hynix is reportedly restarting investment in its second NAND flash plant in Dalian, China. According to Seoul Economic Daily, sources say the company’s NAND subsidiary Solidigm resumed investment in Dalian Fab 2 in the first half of this year and has completed construction of the fab building. Equipment installation could begin as early as November, with NAND mass production targeted for the first half of 2027. The new line is expected to add around 50,000 wafers per month to Dalian Fab 1’s existing capacity of 100,000 wafers per month, boosting SK hynix’s total Dalian production capacity by roughly 50%, the report highlights.
The investment is restarting after a four-year pause. SK hynix acquired Intel’s NAND business and Dalian Fab 1 in 2021, while construction of Fab 2 began in May 2022 before being halted during the memory downturn, the report notes.
SK hynix Pursues Two-Track NAND Strategy in Dalian and Cheongju
With the Dalian Fab 2 investment, SK hynix is pursuing a two-track NAND production strategy. According to Seoul Economic Daily, Dalian will focus on general-purpose NAND based on mature technologies, with production centered on around 100-layer NAND using Intel’s mature floating-gate (FG) architecture. In South Korea, Cheongju will focus on advanced, high-layer-count NAND, with production of 300-layer-plus products expected to be concentrated at facilities such as the M17 fab.
Dalian, however, continues to face constraints from U.S. semiconductor equipment restrictions. As noted by Chosun Biz, the restrictions on advanced equipment such as EUV have constrained upgrades at the site, contributing to delays in equipment conversion and yield improvements.
In parallel, SK hynix is expanding advanced NAND capacity in South Korea. Seoul Economic Daily notes that the company previously announced a KRW 19.1 trillion investment in its Cheongju M17 fab, with the first cleanroom set to open by the end of 2028 for next-generation NAND production.
The expansion comes as SK hynix strengthens its position in the global NAND market. According to TrendForce, in the 1Q26 NAND Flash revenue ranking, SK hynix Group, including SK hynix and Solidigm, ranked second with approximately US$7.53 billion in revenue, up 44.6% QoQ. Its market share reached 17.6%, behind Samsung’s 31.6%.
Samsung Advances Xi’an NAND Upgrade
Meanwhile, market leader Samsung is also upgrading its NAND production base in China. According to Sisa Journal, Samsung completed the conversion of its Xi’an fab from 128-layer V6 to 236-layer V8 NAND on March 30, with V8 now in full-scale mass production as V6 production winds down. The company is also building infrastructure for 286-layer V9 NAND, with related investment targeted for completion this year and the new line expected to be completed and enter full-scale operation in 2027.
According to TrendForce, Samsung’s Xi’an fab currently accounts for around 30–35% of its total NAND production capacity, while SK hynix’s Dalian operations represent roughly 35–40% of its total NAND production.
Read more
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(Photo credit: SK hynix)
