Report: SK Hynix's Dalian Fab 2 to Mass-Produce 200+ Layer QLC NAND with FG Structure Next Year

According to a report by the Korean outlet The Bell, SK Hynix has officially moved forward with plans to mass-produce 200-layer-class mid-to-late stage NAND Flash using a Floating Gate (FG) structure at its Dalian Fab 2 (Fab 68). The company aims to kick off full-scale production in the second half of next year, positioning itself to aggressively capture the enterprise SSD (eSSD) market for AI data centers.

Production Capacity Timeline

Q3 2026: Establish a "One Path" pilot production line at Dalian Fab 2 to verify the stability and mass-production yield of the new process. Relevant equipment orders are currently underway.

H2 2026 to H1 2027: Major production equipment will be moved into the factory successively.

H2 2027: Large-scale mass production is expected to officially launch.

Why Bet on the "Legacy" FG Architecture Against the Trend?

While the vast majority of flash memory manufacturers—such as Samsung, Micron, and Kioxia—have shifted to the Charge Trap Flash (CTF) architecture, with some even considering FG a "previous-generation technology," SK Hynix remains committed to the FG structure. This decision is primarily based on the following considerations:

Higher Data Stability: Although the industry once widely believed that the FG architecture was limited by inter-cell interference effects and would struggle to surpass 200-layer stacking, SK Hynix has successfully overcome this technical bottleneck. Compared to the CTF architecture, FG offers superior data retention stability, perfectly meeting the rigorous demands of AI data centers for stable, massive data storage.

Leveraging the Existing Production Line System: The Dalian plant originated from the acquisition of Intel's NAND business, meaning its existing supply chain, equipment, and process systems were already built around the FG architecture. Continuing with the FG structure allows SK Hynix to directly reuse these existing resources, avoiding the massive capital investment and production line adjustment costs required to switch to the CTF architecture.

Targeting AI Data Centers with Concurrent QLC Technology Adoption

To further target the enterprise SSD market, SK Hynix will also concurrently introduce QLC (Quad-Level Cell) technology. QLC boasts extremely high data storage density and a lower cost per bit, making it widely recognized as the NAND structure best suited for eSSDs.

Regarding the investment plans for Dalian Fab 2, an SK Hynix representative responded: "It is currently difficult to confirm the relevant details."