SK Hynix | KrASIA

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At the foot of green hills where farmers raise chickens and cultivate jasmine tea and rice, construction workers have been putting the final touches on an infrastructure project that policymakers hope will bring new growth to the southern Chinese region of Guangxi and neighboring inland provinces.

Most of the massive trade China conducts with other nations flows through ports and airports along the country’s long and prosperous eastern coast, particularly at the mouths of the Yangtze and Pearl rivers. Opening after four years of construction, the new Pinglu Canal is intended to divert some of China’s east-west trade flows toward the country’s short southern coast and intensify economic connections with Southeast Asia, which in recent years has overtaken both North America and Europe to become the country’s biggest trading partner.

Dubbed by officials as the “project of the century,” the new north-south link will enable cargo ships to turn south from the Xi River, which flows east into the Pearl River Delta, and reach the sea more quickly at the Beibu Gulf, known outside China more commonly as the Gulf of Tonkin.

During a visit last month to Qinzhou, where the canal reaches the Beibu, excavators were removing sediment from the riverbed while cranes swung concrete panels into position to line the new channel. Trucks carrying cement and construction materials clogged nearby roads.

Fisher Tan Hui has already been diverted. Access to the stretch of the Xi where he has long made a living catching fish near Hengzhou, where the canal starts, has been restricted for construction work, so lately he has been ferrying tourists around instead.

“I took seven people out for a two-hour boat ride along the canal yesterday,” Tan said. “I hope more tourists will come.”

Chances are high as the authorities are publicly showcasing the Pinglu as a great feat of engineering, comparing it to the opening of the Grand Canal—which still runs from Beijing almost all the way to Shanghai—more than 1,000 years ago.

While the Pinglu is less than a 10th as long as the Grand Canal, it was completed just four years after construction began. This impressive pace contrasts with the halting advance of canal projects involving Chinese interests in Southeast Asia and other regions. Yet the question of payback on China’s RMB 72.7 billion (USD 10.8 billion) investment in the Pinglu barely enters into discussion.

For Beijing, which has funded Pinglu’s construction through state-owned policy and commercial banks, direct returns on investment are not the point, said Jean-Paul Rodrigue, a professor of maritime business administration at Texas A&M University at Galveston.

“You create accessibility and all sorts of spillover effects [like] new investment, new markets, new trade relations,” he said. “We’re talking about a decade or two in the future. Meanwhile, you have a very big infrastructure sunk cost.”

This year’s priority has been to complete the canal in time for the China-ASEAN Expo. “All localities and relevant departments in the region must go all out, fulfill their mission and leave no regrets,” was the message that came out of a meeting of regional Communist Party leaders last month.

Getting to this point has been a huge undertaking. Although the lower section of the Pinglu tracks the course of the Qin River out to the Beibu Gulf, the upper section was blasted through Guangxi’s mountainous interior. Some 315 million cubic meters of earth and rock were excavated from the hills and the channel of the Qin, enough to fill Beijing’s National Stadium 105 times.

All this digging still left the problem of smoothing out a 65-meter decline to sea level for boats traveling out into the gulf. To deal with this, engineers constructed three sets of hydraulic locks capable of lifting or lowering a loaded ship weighing up to 5,000 metric tons. The massive lock doors can snap shut in 30 seconds.

Key components of the locks’ hydraulic operating systems were designed and manufactured domestically. The canal project also produced significant technological breakthroughs, such as the vertical stacking of water-saving pools and the use of 3D printing to make the hydraulic gates’ control mechanisms, according to state media interviews with project engineers and researchers.

While China’s infrastructure building in recent decades has focused on highways, railways, dams, ports, and airports rather than waterways, groundwork for the Pinglu was laid by other recent projects such as the Jianghuai Canal.

The 355-kilometer waterway parallels a stretch of the Grand Canal and was completed in 2023 as part of a wide-ranging effort to shift water from the free-flowing Yangtze to rivers like the drier Huaihe in north China. Planners are currently evaluating plans for two more extended north-south canals: The Xianggui, which would link the Yangtze and the Xi rivers, and the Ganyue, which would connect the Yangtze and Pearl rivers.

Such ambitions have raised concerns about potential overbuilding. In an interview with Chinese media, Charles Guowen Wang, director of the Center for Logistics and Supply Chain Management at the China Development Institute in Shenzhen, said some proposed inland canals would involve “huge water resource consumption, inter-provincial coordination costs and high engineering investments. … We need to be realistic.”

Meanwhile, Chinese-backed canal projects overseas have made far less progress.

Two years ago, Chinese government officials and executives from state-owned China Bridge and Road Corporation joined Cambodian Prime Minister Hun Manet at a ceremony to break ground on the Funan Techo Canal, a USD 1.7 billion channel to run from Phnom Penh to the Cambodian coast.

The 180-kilometer canal, to be built by a China Bridge joint venture and scheduled for completion in 2028, would reduce Cambodia’s reliance on Vietnamese seaports along the Mekong River Delta and, in the eyes of some observers, give Beijing strategic leverage against Hanoi.

Although local officials announced last year that they had finalized the scope of work to be done, construction has yet to begin amid extended discussions over land rights and financing. On September 9, however, Cambodian officials signed an agreement in Xiamen, China, to receive around USD 1 billion in financing from the Export-Import Bank of China.

“The new Chinese financing could remove the biggest obstacle, but the real test now is whether we see compensation accelerate, contracts mobilized, heavy equipment deployed and sustained construction along substantial portions of the route,” said Ear Sophal, an associate professor of political economy at Arizona State University who studies Cambodia.

The government of neighboring Thailand in 2023 shelved a proposal backed by Chinese business interests to build a canal cutting across a narrow strip of land above the Malay Peninsula that would enable ships to bypass the Strait of Malacca. A year later, the Nicaraguan government revoked a concession granted to Chinese businessman Wang Jing to develop a USD 50 billion alternative to the Panama Canal after a decade of relative inactivity.

“Inside China, Beijing can mobilize financing, land, engineering capacity and political authority with extraordinary speed,” said James Borton, a senior fellow with Johns Hopkins University’s SAIS Foreign Policy Institute. “Overseas, even a strategically friendly country such as Cambodia introduces additional layers of sovereignty, financing, environmental review, compensation, domestic politics and relations with neighboring states.”

Back in Guangxi, the idea of building the Pinglu is credited to Sun Yat-sen, leader of the republican movement that brought down China’s imperial dynasty in 1911. In his 1920 book “The International Development of China,” Sun argued that the construction of a shipping channel to the Beibu port of Qinzhou would boost the economy of inland areas like the provinces of Yunnan and Guizhou.

In any case, the opening of the Pinglu should save companies in the area time and money. Compared with the current riverine route to Pearl River Delta ports like Guangzhou, Shenzhen, and Hong Kong, the canal will provide a 560-kilometer shortcut. This could translate into RMB 5.2 billion (USD 773.2 million) in annual savings, according to state broadcaster CCTV.

To add to the attraction, cargo ships will not be charged to transit the Pinglu’s locks for the rest of 2026. They are then to be charged RMB 1 (USD 0.15) per gross ton per lock. This compares with prices for auctioned slots to transit the locks of the Panama Canal which exceeded USD 2.5 million in some cases last month.

Chinese brokerage TF Securities estimated in a report two years ago that by 2035, the Pinglu Canal would bring 200 million tons of incremental annual freight volume to state-owned Beibu Gulf Port, whose portfolio includes Qinzhou as well as the nearby ports of Fangchenggang and Beihai.

This would represent a big jump from the 358 million tons of cargo the ports handled last year. The busiest terminal of Beibu Gulf Port, whose Shenzhen-listed shares have risen 27% over the past year, is operated by a joint venture with Singaporean state company PSA International.

Currently, trade between this corner of China and Southeast Asia is centered on bulk commodities, with coal, building materials and grain sent south and mineral resources coming north. Like local governments elsewhere in China, authorities in Guangxi in recent years have liberally doled out subsidies to incentivize high-tech manufacturing, but the results have been unimpressive.

Nanning, for example, extended financial support to electric vehicle maker Hozon New Energy Automobile, which set up a large factory not far from the Pinglu Canal. But despite aggressive marketing of its Neta-branded cars in Southeast Asia, Hozon racked up heavy losses and halted most production last year. The factory appeared dormant last month, with hundreds of uncompleted cars visible within.

Pinglu could potentially play a role in the accelerating shift of Chinese supply and production chains into Southeast Asia. Companies have been relocating operations both to take advantage of lower labor and other input costs in certain countries and to cope with heightened barriers to “Made in China” products in the US and other export markets.

“In the bigger picture, this strengthens ASEAN’s position in global supply chains as a cost-efficient manufacturing hub,” said Priyanka Kishore, director and principal economist at Asia Decoded, a Singapore-based research company.

Yet Southeast Asian governments may be starting to reconsider the merits of this kind of relationship.

“ASEAN governments face a delicate calculation,” Borton said. “They want the infrastructure and investment that come with deeper Chinese economic integration, but they do not necessarily want Southeast Asia to become the release valve for Chinese industrial overcapacity displaced from the US and European markets.”

Residents along the Pinglu, however, are hopeful the canal will generate new business opportunities.

“I am focusing on saving money so I can buy a house,” said Su Zixuan, a 20-year-old fish trader in Qinzhou. “I don’t know much about the canal, but I hope it makes this city develop faster.”

This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.

Note: RMB figures are converted to USD at rates of RMB 6.73 = USD 1 based on estimates as of September 15, 2026, unless otherwise stated. USD conversions are approximate and, where appropriate, rounded for ease of reference. They may not fully match prevailing exchange rates.

20:T10ec, Pinglu Canal underscores China's turn toward Southeast Asia 21:Tdf5,

DJI and Insta360 compete in overlapping hardware categories, and their rivalry has extended to patent disputes. Their headquarters are also only a short drive apart in Shenzhen.

They have plenty of company. Across the city’s hardware belt, businesses making cameras, batteries, robots, and 3D printers operate within easy reach of one another. Few places offer such a concentration of engineers, component suppliers, prototyping services, and manufacturers.

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Building a working prototype is only the beginning. Producing thousands of units can expose problems that were less obvious when making one. A component may be difficult to source in sufficient quantities. An assembly process may need simplifying. Solving those problems often requires designers and manufacturing specialists to work through changes together.

Shenzhen makes it easier to find that expertise nearby. Some companies are close enough to share an elevator. Robotics companies EngineAI and Astribot, for example, occupy different floors of the same office tower. Proximity does not necessarily mean collaboration, but it illustrates how concentrated the industry has become.

Insta360’s own history illustrates the appeal. It moved to Shenzhen in 2015 after encountering difficulties scaling up production of optical modules for its panoramic cameras. The local supply chain helped it address that bottleneck.

The city’s pool of expertise also expands as people move between companies or start their own. EcoFlow’s founder previously worked in DJI’s battery division, while Bambu Lab’s founding team came from DJI’s consumer drone business. Both went on to build companies in different product categories while remaining in Shenzhen.

An employee’s departure can mean a loss of experience for one company while adding to the range of businesses nearby. Suppliers gain potential customers, and engineers gain more places to apply their skills.

Over time, these connections give new companies reasons to remain in Shenzhen, including those competing with established players. They can tap production expertise, supplier networks, and industry relationships that would take time to build elsewhere.

How has China responded to calls for an AI slowdown?

Chinese officials have criticized the warnings from Amodei and other American AI leaders as an effort to “monopolize” development. A Foreign Ministry spokesperson warned that the executives are “spreading narratives of threat, engaging in confrontation and resorting to malicious competition.”

The Chinese Communist Party-affiliated Global Times wrote that Amodei’s latest essay on risks—in which he said that a swarm of AI agents “could be capable of taking over the entire internet” in six to 12 months—is “geared toward safeguarding the US lead in AI relative to China.”

China has also pushed back against allegations by Amodei and US government agencies that Chinese labs are using “industrial-scale” distillation, a technique used to train AI models using input from larger models, to soak up the capabilities of frontier American models. A commentary published by the state-run People’s Daily described distillation as common practice, and accused Washington of a “blatant double standard” by allowing US companies to distill Chinese models while labeling the same activity by Chinese companies an “attack.”

The US “continues to adhere to a hegemonic logic where ‘only the US wins,’ rather than ‘shared success for humanity,'” the article argued.

How does Beijing view AI risk?

Although Chinese officials dispute the US warnings and characterization of Chinese AI as a threat, they have become increasingly vocal about security and the need to avoid a “loss of control.”

In an article published on September 13, Chen Yixin, China’s minister of state security, warned that the latest Anthropic and OpenAI models can “exploit cyber vulnerabilities” and develop malware. He also wrote that the open-source AI agent tool OpenClaw, which went viral in China earlier this year, can remotely hijack devices and leak sensitive user information.

His worries echoed a speech Xi gave at the World Artificial Intelligence Conference in Shanghai in July, where the president called for stronger oversight and governance to “ensure that AI remains under human control at all times.”

Over the past year, China’s AI governance has expanded beyond content control to address broader risks, most visibly those posed by increasingly autonomous agents, according to a July report by Beijing-based AI safety consultancy Concordia AI. The company also found that frontier AI safety research in China has intensified: Agent safety accounted for more than a quarter of new papers in early 2026, up from 8% in early 2025.

“I think their biggest concern is that frontier AI systems, especially when available to the US government, could destabilize China’s cyberspace in ways that affect the physical world, hence threatening regime security,” said Rebecca Arcesati, head of the science, technology, and innovation program at the Mercator Institute for China Studies (Merics).

Jacob Cooke, co-founder and CEO of WPIC Marketing and Technologies, an e-commerce and technology consultancy, said that while the Chinese government seems to be taking general AI risks more seriously, it is unlikely to embrace a global research slowdown or self-regulation because it deems such proposals “vehicles for containing China’s AI development, similar to US chip restrictions.”

How have Chinese companies responded?

Discussion of AI’s long-term threat to humanity appears muted among China’s tech giants. They are focused instead on immediate operational risks.

Since Anthropic’s Claude Mythos preview shook the cybersecurity world earlier this year—the company deemed the model too dangerous to release publicly—Chinese companies have been racing to catch up. Several leading players have formed dedicated teams to develop products comparable to Mythos, though they are still lagging, according to a source close to the efforts.

Zhipu, also known as Z.ai, has been one of the more outspoken Chinese companies on AI safety. When it released its GLM-5.3 model last month, it also launched a “Shield of Open Source” initiative, offering free security audits to help users fix software vulnerabilities, and automated code-auditing tools, through its ZCode platform.

However, during a media roundtable at an annual Huawei event in Shanghai on September 17, rotating chairman Eric Xu said Chinese companies should move faster so that they can feel the same risks that American AI leaders already sense.

Xu argued that China’s largely open-source AI models are relatively transparent, while US companies with far greater computing power may be the only ones who know how sophisticated their models have become and what dangers they pose.

Xu added that the industry must balance rapid development with effective safeguards. “The bottom line is we need to ensure AI for good,” he said, “not AI for bad or evil.”

What is the current state of US-China AI competition?

Industry watchers say the gap between US closed-weight models, which are run through their vendors, and Chinese open-weight models, which can be downloaded and run on one’s own hardware, is rapidly closing.

And while the US is still considered ahead in AI performance, China leads in adoption. In one survey published by Morgan Stanley on September 14, 80% of respondents in China used AI at least once a week, compared to 54% in the US.

“The proliferation of Chinese open-weight models as a cheaper alternative is not only shaping global tech markets seeking to distance themselves from dependence on US tech, but also having impacts within the United States, as many startups have begun using open-weight models to build and train their own models more cheaply,” said a report by the Center for Strategic and International Studies published last week.

What can be expected during the Trump-Xi summit?

US treasury secretary Scott Bessent and Chinese vice premier He Lifeng met in New York ahead of Xi’s visit to the White House. In the run-up to the visit, the US was thought to have discussed “shared risks” in AI with China, Bessent told US media outlet Axios.

“Given the strategic utility of AI superiority is undeniable, striking the right balance and establishing an appropriate framework for addressing these issues may be the most important topic of the Trump-Xi meeting,” said Andy Mok, a senior research fellow at the Beijing-based Center for China and Globalization.

Sun Chenghao, a fellow with the Center for International Security and Strategy at Tsinghua University, said the two sides may find common ground in AI safety. “Both countries increasingly recognize that some AI risks are transnational and will not stop at national borders simply because the two countries are strategic competitors,” Sun wrote on Thursday. “Addressing these issues does not require prior agreement on chip controls or technological leadership.”

But other analysts expect mutual distrust to limit progress. The two sides agreed to hold a formal AI dialogue after the presidents met in May, according to Beijing, but no talks have been held officially.

Gavekal analyst Laila Khawaja said in a note that bilateral talks on AI are unlikely to produce binding agreements or major policy shifts. “The prisoner’s dilemma of AI competition among US AI labs and the competitive nature of the US-China relations means the call to slow down frontier AI development is unlikely to materialize,” she said, adding that the most realistic outcomes are continued dialogue, establishment of crisis communication mechanisms and incremental cooperation in narrowly defined areas of shared concern.

Arcesati at Merics cautioned, “Trust between the two countries is extremely low, and no one side seems to have the incentives to put safeguards on its own industry’s development so long as the other doesn’t move first.”

This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.

24:T1156, China rebuffs AI slowdown calls ahead of Trump-Xi summit: 5 things to know 25:T2d11,

In just five years and in the face of mounting US restrictions, China’s share of the global memory chip market has gone from virtually zero to 5%—and industry insiders say it could double in 2025 alone in a challenge to global leaders Samsung Electronics, SK Hynix, and Micron.

Much of that growth is down to ChangXin Memory Technologies (CXMT). After two years of expanding capacity in Beijing and Hefei, where it is based, CXMT can now produce commercially viable dynamic random access memory (DRAM) chips, a vital component in just about every type of electronic device. It is also working to produce high-bandwidth memory (HBM) chips for artificial intelligence computing.

CXMT’s successful production of DRAM, largely for budget and midrange smartphones, represents a victory for China in its long battle to break the hold that South Korean and US players have had on the memory chip industry. But achieving domestic aims is starting to impact the global supply-demand balance of a notoriously volatile market.

While Washington began restricting China’s purchases of advanced DRAM chipmaking machines in 2022, this only strengthened Beijing’s resolve to become self-reliant. Looking purely at wafer capacity, CXMT could produce the equivalent of around 10% of the global DRAM chip output for 2024, industry executives and analysts told Nikkei Asia. Because of lower production quality, its actual market share was much lower, they said, but added that it is set to continue increasing.

Fujian Jinhua Integrated Circuit (FJICC), a Chinese chipmaker blacklisted by the US back in 2018, has, with the help of Huawei Technologies, been producing small batches of lower-grade DRAM for consumer electronics, sources briefed on the matter said. SwaySure, another Huawei-backed DRAM chipmaker, was added to the US blacklist in December 2024. It, too, has been working on making DRAM and is also researching stacking technologies for HBM.

The market presence of these players, while small, is still significant.

“Any increase of DRAM supplies by new players can pressure existing players and affect the global market, even if it’s only a few percentage points,” said Brady Wang, a veteran tech analyst with Counterpoint Research.

Considering capacity, production quality and actual market impact, the combined market share of all Chinese players could surge to 10% this year, up from 5% last year, said Ellie Wang, a tech analyst with TrendForce.

While DRAM is widely used in smartphones, computers and other consumer electronics, it is also considered a commodity. Once performance requirements are met, these chips are interchangeable and do not rely on unique, proprietary features. This makes the DRAM market highly volatile and extremely sensitive to economic conditions and changes in supply and demand.

New suppliers emerging in China have significant local advantages.

“Chinese device and electronics makers will very likely prioritize adopting these local supplies once they become available,” Counterpoint’s Wang said. “If their global market share is around 5–10%, their share within China could be substantially higher,” the analyst said.

Micron CEO Sanjay Mehrotra acknowledged Chinese competition in a recent earnings briefing but stressed that it is mainly in the “lower end of the consumer market, primarily in China.” Micron, he added, will shift its focus toward higher-grade and higher-performing DRAM chips, such as those used in data centers. About 10% of Micron’s revenue in fiscal 2025 comes from the segment directly competing with Chinese players.

President Lee Pei-Ing of Nanya Technology, the world’s fifth largest DRAM maker, said the company’s revenue from China has fallen since last year not only because of China’s “local for local” drive and competition from CXMT but because of the overall economic slowdown. He said competition from CXMT currently comes from low-power DRAMs for smartphones.

“We still hope to serve China customers who want to sell to overseas markets at a time when their demand gradually rebounds, and we also hope to explore more customers that aim to have non-China production partners,” Lee said.

Both Samsung and SK Hynix declined to comment on their Chinese rivals. CXMT did not respond to requests for comment.

Industry sources say the two companies recognize Chinese makers’ capability in legacy products but are not too concerned because they themselves are focusing on more lucrative markets.

“Samsung does not see them as a threat because legacy products do not make much money,” said an industry source familiar with the company’s memory chip strategy, who asked not to be named. “Samsung focuses on high-capacity products, including HBM.”

Another industry source said SK Hynix also prioritizes high-value products such as HBM and enterprise solid-state drives.

CXMT has successfully produced LPDDR4 and DDR4, older generations of DRAM that are used in entry-level to midrange smartphones, computers and tablets. It has started providing a small batch of LPDDR5, the grade that has been used in premium handsets like the iPhone and Samsung Galaxy S and Z series since around 2020. Higher-grade DRAM offers faster data retrieval and transfer speeds and improved energy efficiency. Advances in DRAM over the years have been less pronounced compared to processor chips, potentially giving China an opportunity to catch up.

Geopolitics could be a hurdle, however. CXMT was not included on the US trade blacklist when Washington launched its latest round of export controls in December 2024, though the US Department of Defense did flag the company as being linked to the Chinese military, a designation that could potentially affect its partnerships and collaborations in global markets.

“CXMT has made technological breakthroughs in recent years and performed well in the mid-to-low-end memory chips used in products like smartphones, notebook computers and desktop computers in the home market,” said an executive with a supplier to CXMT and Micron. “Starting with its higher-end LPDDR5 later this year, it is expected that foreign players like Samsung, SK Hynix and Micron will feel more pressure.”

A key advantage for China in developing its DRAM industry is a massive domestic market. Chinese companies dominate the global smartphone market, with a share of over 58.5%, according to Omdia. Chinese TV makers control more than 40% of the global market, data from Trendforce showed, while its computer makers have some 30%.

In some cases, CXMT can offer prices that are 20–30% lower than leading global players, a chip industry executive told Nikkei Asia. “Even if it’s not in all projects, this type of price discount could already pressure market leaders,” the executive said. “In the past few years, it started to affect smaller Taiwanese players, and now it has started to challenge top global players.”

In addition to lower prices, Chinese companies and agencies can often receive government subsidies if they buy more locally made chips, providing another advantage over foreign suppliers, analysts and industry executives said.

“Due to government support, they have not yet built up a high cost structure and therefore can be quite competitive,” an executive of a memory chip substrate supplier told Nikkei Asia. However, CXMT and its peers are spending generously to poach experienced employees from foreign substrate suppliers. “Over time, their cost structure will increase,” the executive added.

Multiple industry executives told Nikkei Asia that CXMT’s success can be attributed in part to talent from South Korea, Japan, and Taiwan. In one high-profile case, South Korean prosecutors in 2023 issued an arrest warrant for a former Samsung employee for allegedly handing over DRAM-related information to CXMT. Inotera Technologies, a Taiwanese DRAM maker that later merged with Micron in 2016, had hundreds of employees who went to work for multiple China chipmakers, including CXMT. The late Yukio Sakamoto, former president of Japanese DRAM chipmaker Elpida Memory, took key executive roles at CXMT and SwaySure when both companies were started.

Wang, the TrendForce analyst, said the price for legacy DRAM chips has been relatively soft in the past few quarters and that weakness could continue for at least a couple more quarters. “The most susceptible market segment is DRAM for mid-to-low-end products,” she said. “We do see Chinese players start sending samples for higher-grade DRAMs for higher-end smartphones and also higher-grade products for servers, but that could take a bit longer for customers’ verifications.”

“Currently, Chinese DRAM makers’ clients are still concentrated in the domestic market and [are] Chinese companies, Wang said. “Venturing overseas and foreign clients are not their priority now.”

DRAM was one of the early battlefields in the US-China tech struggle. Chinese DRAM chipmaker JHICC was abruptly blacklisted by Washington in 2018 before it had even started to mass produce DRAM over the allegations that it had stolen Micron’s trade secrets.

Micron, meanwhile, was subjected to an inspection by the Chinese government in 2023 over alleged security risks of its memory products. The leading US memory chipmaker announced months later that it would invest RMB 4.3 billion (USD 590 million) at its Xi’an complex for chip packaging over the next few years.

SK Hynix has a large DRAM production capacity in the Chinese city of Wuxi, while Samsung has significant NAND flash production in Xi’an. The two South Korean companies have obtained US waivers to import advanced chip production tools into China amid Washington’s curb on China’s semiconductor advancement. However, as they are also receiving funds from the CHIPS Act to invest in the US, which carries restrictions against major expansions in China without Washington’s approval.

This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.

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