Samsung will sell off equipment for the production of 100-layer memory in China

A considerable part of Samsung and SK hynix memory chips are produced in China, and specialized equipment requires updating and replacement. As Chosun Daily notes, Samsung is preparing to sell decommissioned equipment for producing 3D NAND memory from its Chinese plant in the domestic market.

Image Source: Samsung Electronics

It is assumed that Samsung will try to find new owners for its used equipment to produce 100-layer 3D NAND memory. The most likely candidates for the purchase are Chinese memory manufacturers, but so far Samsung and SK hynix have preferred to sell equipment through intermediaries, avoiding direct deals with Chinese companies. Samsung is going to transfer its enterprise in Chinese Xi’an to produce 200-layer memory.

Under US export control regulations, which came into force in October 2022, supplies to China of equipment for the production of 3D NAND memory with more than 128 layers are prohibited. Samsung and SK hynix were able to obtain an exemption from these restrictions for an indefinite period. However, selling used equipment in China poses a certain risk for Korean companies, even in the case of equipment designed to produce memory according to older standards. Samsung itself intends to launch production of 400-layer 3D NAND memory by 2026. Whether the company will be able to find buyers in China for its old equipment without compromising relations with American officials will become clear next year, when the issue of getting rid of this equipment will become highly relevant.