SK Hynix Negotiates Chip Equipment Exports for China Plant in Exchange for US Manufacturing Investment
SK Hynix is maneuvering through complex challenges in the U.S.-China chipmaking industry. The company’s flash memory division, Solidigm, is looking to obtain U.S. authorization to transport American chip manufacturing equipment to its Dalian factory in China, as a requirement to move forward with a semiconductor facility in the United States, according to reports from unnamed sources.
Solidigm is reportedly working on establishing a NAND flash memory chip production plant in the U.S., with upstate New York being considered as a possible site for the operation.
NAND flash chips are mainly utilized in solid-state drives, which are integral to devices ranging from laptops and smartphones to AI data centers. The ongoing global shortage of components, driven by surging demand for AI technology, has led to increased prices for crucial data center components, including high-speed RAM and SSDs. Market research firm TrendForce forecasts a price increase of 15% to 20% for NAND in the fourth quarter.
According to sources, Solidigm aims to enhance the production capacity of NAND chips by installing additional chip manufacturing equipment in available areas within the Dalian plant.
SK Hynix clarified that it is not looking to expand capacity at its Dalian Mod B plant, which was completed in 2023. The company emphasized that the installation of this equipment is being carried out with the U.S. government’s consent and oversight.
In October 2022, the U.S. government imposed extensive restrictions on the export of advanced chips and manufacturing equipment to China, citing national security issues, and these regulations were further tightened in 2023. Additionally, in September 2025, export privileges for specific facilities of SK Hynix, Samsung, and Intel in China were revoked. While the U.S. government has since provided annual licenses for Samsung and SK Hynix to send chipmaking equipment to their Chinese operations, it continues to encourage foreign manufacturers to establish and expand their production capabilities on American soil. In July, Commerce Secretary Howard Lutnick expressed his desire for Samsung and SK Hynix to build production plants in the U.S. and indicated ongoing discussions with both firms.
Solidigm is reportedly gearing up for a U.S. initial public offering in 2027 that could net around $10 billion and potentially value the company at up to $100 billion.
