Samsung's Xi'an factory undergoes process upgrade, SK Hynix increases capacity at two major plants, South Korean chip giants ramp up investment in China

Glonghui April 1st｜"Korean chip giants increase investment in China to address memory shortages in the field of artificial intelligence." On March 30th, The Korea Times reported under this headline that the latest data show South Korea's two biggest chip giants, Samsung Electronics and SK Hynix, will continue to increase investment in their Chinese factories in 2025. This dynamic strategic deployment is not only a direct response to the current global shortage of memory chips, but also highlights China's key position in the global semiconductor supply chain.Investment in China surged last yearAccording to investment data, the two companies' investments in China in 2025 are showing significant growth. According to The Korea Times, citing annual reports submitted by both companies to the Financial Supervisory Service of South Korea, Samsung Electronics will invest 465.4 billion won (approximately $304 million) in its chip factory in Xi'an, Shaanxi in 2025, a year-on-year increase of 67.5%. SK Hynix will invest 581.1 billion won in its plant in Wuxi, Jiangsu, a year-on-year increase of 102%, and 440.6 billion won in its factory in Dalian, Liaoning, a 52% increase compared to 2024. The report states that amid continued strong demand for AI computing and a tightening supply of memory chips, Korean companies are accelerating capacity expansion.From the pace of investment, this round of increased investment shows a clear pattern of restorative expansion.