SK Hynix is restarting construction of its Dalian Plant 2 in China, a move that directly counters the rapid expansion of domestic storage makers YMTC and CXMT. This capacity expansion matters because it signals a renewed commitment to the Chinese market despite previous geopolitical headwinds and industry downturns. Enterprise storage buyers and system integrators should monitor potential changes in global NAND supply as the facility begins operations.
New production lines bring monthly wafer starts to 150,000
The facility in question is SK Hynix's second NAND flash manufacturing plant in Dalian, China. Plant 1 currently operates with a monthly wafer start capacity of 100,000 wafers. The restart of Plant 2 is designed to supplement this existing infrastructure with additional production lines.
The new Plant 2 will add 50,000 wafers to the monthly production count. This addition brings the total Dalian facility capacity to 150,000 wafers per month. The company states that this represents an approximate 50% increase in overall storage chip production for the Dalian site.
SK Hynix plans to complete the installation of the first batch of semiconductor production equipment by the end of 2024. Mass production at the restarted plant is scheduled to begin in the first half of 2025. These timelines mark the transition from construction to active manufacturing output.
The project faced a significant pause after global storage industry conditions entered a downturn. Construction had been stalled for four years before the decision to restart was made. The company is now moving forward with equipment installation to resume operations.
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