SK hynix to Resume China Fab Expansion, Targeting 50% NAND Output Boost by 2027

SK hynix has restarted investment in its NAND flash fabrication plant in Dalian, China, operated by its Solidigm subsidiary, with plans to raise production by 50% in 2027, according to reports cited by Tom's Hardware and TechPowerUp.

The expansion follows a roughly four-year pause. SK hynix acquired Intel's 3D NAND and SSD business in 2021 and formed Solidigm to run it, but subsequently suspended capacity expansion in China. Tom's Hardware attributed the freeze to the 2022-2023 memory market downturn and to U.S. export controls limiting shipments of advanced fabrication tools to China.

The renewed push is tied to rising demand for solid-state storage, particularly high-capacity SSDs used in data centers. According to TechPowerUp, Solidigm currently produces about 100,000 NAND flash wafers per month, and a 50% increase would lift output to roughly 150,000 wafers per month. The subsidiary is also set to begin producing floating gate 3D QLC NAND with more than 200 active storage layers per chip, enabling multi-terabyte enterprise SSDs. TechPowerUp noted that global NAND flash production is expected to balance with demand in 2027.