SK Hynix resumes Dalian factory expansion for NAND flash chips

SK Hynix is set to resume the expansion of its second factory in Dalian, China, with plans to produce 238-layer NAND flash chips. The project, which was effectively paused in 2022 due to industry downturns, will see equipment installation begin in the latter half of this year, with facility construction to be completed in stages by the first half of 2025.

The Dalian facility is considered by the company to be the quickest location to expand NAND production capacity. The first Dalian factory has already been upgraded to accommodate 192-layer NAND flash production lines.

This move comes as demand for NAND flash grows, mirroring the trend seen in DRAM, driven by the proliferation of data centers for artificial intelligence. SK Hynix has been preparing for increased investment, having significantly boosted capital for its Dalian NAND flash factories last year.

Reports indicate the new production line at the Dalian second factory is targeting a monthly capacity of 30,000 to 50,000 wafers for the 238-layer NAND chips. Local suppliers have begun relocating idle equipment, and overseas manufacturers have received initial orders for new machinery.