Samsung's Xi'an factory process upgrade, SK Hynix increases capacity at two major factories, South Korean chip giant boosts investment in China

“South Korea’s chip industry giants are increasing investment in China to address the memory shortage problem in the artificial intelligence sector.” Citing this headline, The Korea Times reported on March 30 that the latest report data shows Samsung Electronics and SK hynix, the two biggest South Korean chip makers, will continue to increase investment in their China-based factories in 2025. This strategic deployment is both a direct response to the current situation in which the global memory chip market faces supply and demand imbalance and also highlights China’s key position in the global semiconductor supply chain system.

Rising Investment in China Last Year
Judging from the investment figures, both companies’ investments in China in 2025 show a clear increase. According to the annual reports the two companies submitted to South Korea’s Financial Supervisory Service, in 2025 Samsung Electronics plans to invest 465.4 billion won (about $304 million) in its chip factory in Xi’an, Shaanxi, a 67.5% year-over-year increase; SK hynix will invest 581.1 billion won in its factory in Wuxi, Jiangsu, up 102%, and 440.6 billion won in its factory in Dalian, Liaoning, up 52% compared with 2024. The report said that amid the continued surge in AI computing demand and a tightening supply of memory chips, South Korean companies are accelerating efforts to increase production capacity.

In terms of the pace of investment, this round of stepped-up spending has clear characteristics of a recovery-driven expansion. (Global Times)