Source: Reuters
Samsung and SK Hynix are retrofitting existing fabs in China to produce 200+ layer NAND flash—a direct response to YMTC's vertical integration and cost competitiveness in the world's largest memory market. South Korean chipmakers are accepting geopolitical risk to maintain market share as YMTC closes the technical gap faster than expected. If YMTC captures enough of China's internal demand at lower costs, the economics of Samsung and SK Hynix's global operations degrade substantially.