Samsung and SK Hynix are betting on massive China expansion despite growing geopolitical tensions. Wuxi is developing into the global DRAM center with over 30% of worldwide production, while Xi'an gains importance as the only external fab location.
Wuxi as DRAM Capital of the World
The Chinese city of Wuxi has developed into the most critical DRAM production site:
- Global share: Over 30% of worldwide DRAM production
- Samsung Wuxi: State-of-the-art fab technology, 1x nm nodes
- SK Hynix Wuxi: Parallel expansion alongside Samsung
Xi'an as Strategic Backup Location
Xi'an serves as the only external fab location outside the Korean home bases and is being expanded into a strategic backup for critical production capacities.
Geopolitical Risk vs. Market Access
The massive China presence carries significant risks in trade wars or political tensions but is indispensable for access to the world's largest semiconductor market.
Both companies balance between US sanctions risks and the necessity to maintain a presence in China. The concentration in Wuxi makes global DRAM supply vulnerable to local disruptions or political interventions.
Sources: SCMP, The Register