--- title: "After a 70% Quarterly Surge in NAND Prices, SK Hynix Resumes Dalian Phase II Expansion, Accelerating Competition with Samsung's Xi'an Plant" type: "News" locale: "en" url: "https://longbridge.com/en/news/292278620.md" description: "Driven by the windfall from NAND prices soaring over 70%, SK Hynix plans to restart the Phase II expansion of its Dalian plant in the second half of 2026, adding a V8 (238-layer) production line with a monthly capacity target of 30,000 to 50,000 wafers. Meanwhile, Samsung's Xi'an factory has completed the conversion to a 236-layer V8 production line and entered mass production. The simultaneous capacity expansion by these two giants in China signals that the NAND supply side is returning to an expansion trajectory" datetime: "2026-07-10T05:07:22.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292278620.md) - [en](https://longbridge.com/en/news/292278620.md) - [zh-HK](https://longbridge.com/zh-HK/news/292278620.md) --- # After a 70% Quarterly Surge in NAND Prices, SK Hynix Resumes Dalian Phase II Expansion, Accelerating Competition with Samsung's Xi'an Plant According to TrendForce, SK Hynix plans to restart the previously suspended Phase II expansion project at its Dalian plant in the second half of 2026, adding a V8 (238-layer) NAND production line. The project had been paused due to the downturn in the NAND market and U.S. export controls. Its resumption marks the company's translation of the historic recovery in NAND prices into actual capacity deployment. According to News Tomato, **SK Hynix will begin installing production equipment at the Dalian Phase II plant in the second half of this year, completing facility construction in stages by the first half of 2027.** Domestic partners have already started transferring idle NAND equipment to Dalian, and overseas suppliers are reported to have received initial purchase orders for equipment delivery. Sisa Journal further disclosed capacity details: Dalian Phase II will add one V8 production line (238 layers), with a monthly capacity target of 30,000 to 50,000 wafers. The Dalian Phase I plant is currently undergoing a deep conversion of its production lines to 192-layer NAND and replacing aging equipment. ## The Turning Point Behind the Suspension: From Export Controls to Annual Approvals The stagnation of the Dalian Phase II expansion was directly caused by two factors: first, the uncertainty surrounding U.S. export controls on semiconductor equipment to China, and second, the continued slump in the NAND market. On the regulatory front, a key variable has changed. According to News Tomato, the U.S. has adjusted its original "Validated End-User" (VEU) system to an annual approval process for equipment shipments, thereby alleviating uncertainty in equipment supply and providing operational room for SK Hynix to restart the Dalian expansion. The timing of this regulatory change is noteworthy. In this context, the market is watching whether SK Hynix can leverage the boom in DRAM and HBM to further unlock the value of its KRW 11 trillion (approximately USD 8 billion) acquisition of Intel's NAND business through the Dalian expansion. Reports indicate that **Dalian Phase II is regarded as the fastest-expanding site among SK Hynix's NAND production bases.** ## Industrial Context for V8 Line Deployment: NAND Prices Hit Historic Peaks The timing of the expansion restart is no accident. In the first quarter of 2026, SK Hynix's average selling price for NAND rose more than 70% quarter-over-quarter, setting a historical record for a single quarter. The company's guidance for the second quarter further clarified that NAND shipments would "turn from decline to growth," rebounding quarter-over-quarter. The dual improvement in prices and shipment volumes provided the decision-making basis for restarting the previously shelved capital expenditure plan. Data from The Korea Times shows that **SK Hynix's investment in its Dalian NAND manufacturing subsidiary increased to KRW 440.6 billion in 2025, a year-on-year increase of 52%**—even before the formal restart of the Phase II expansion, the company's investment in the NAND sector had already accelerated. In terms of technology roadmap, SK Hynix has previously completed production verification for 375-layer 3D NAND flash memory and plans to start mass production at its M15 factory in Cheongju, South Korea, by the end of the year. The Dalian V8 (238-layer) production line forms a technological gradient with this, serving different market positions. ## Heating Up Competition: Samsung's Xi'an Plant Also Accelerates SK Hynix is not the only memory giant expanding NAND capacity in China. According to Sisa Journal, **Samsung Electronics is also accelerating the upgrade of its Xi'an factory's NAND capabilities.** Samsung completed the production line conversion from 128-layer V6 to 236-layer V8 on March 30 and is currently entering the mass production stage. Investment data confirms this trend. According to Sisa Journal estimates, Samsung's investment in its Xi'an NAND factory in 2025 was approximately USD 304 million, a year-on-year increase of about 67.5%. The simultaneous expansion of NAND capacity in China by the two South Korean memory giants means that the global NAND supply side is moving from a contraction cycle into an expansion trajectory. From a timeline perspective, mass production of Samsung's Xi'an V8 has already started, while the installation of V8 equipment at SK Hynix's Dalian Phase II is expected to begin only in the second half of the year. 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