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SK Hynix unit seeks US approval for China factory equipment as part of deal for US plant

Solidigm's negotiations highlight ongoing tensions in US-China semiconductor trade

By LineZotpaper
Published
Read Time2 min
SK Hynix's flash memory unit Solidigm is seeking US approval to send American chipmaking equipment to its factory in Dalian, China, as a condition for proceeding with plans to build a semiconductor factory in the United States, according to Reuters, citing anonymous sources.

Solidigm, the NAND flash memory subsidiary of South Korea's SK Hynix, has been reportedly considering building a NAND flash memory chip factory in the US, with upstate New York as a potential location. NAND flash chips are used in solid-state drives, which are critical components in laptops, smartphones and AI data centers. Rising demand for AI infrastructure has pushed up prices for memory chips, with research firm Trendforce expecting NAND prices to increase by 15% to 20% in the fourth quarter.

According to Reuters, Solidigm wants to install more chipmaking equipment in spare space at SK Hynix's Dalian factory in China to boost NAND production. However, SK Hynix told TechCrunch it is not seeking to expand capacity at its Dalian Mod B facility, which was completed in 2023. The company added that the equipment installation is being carried out in consultation with and under authorization from the US government.

The US first imposed sweeping restrictions on advanced chips and chipmaking equipment exports to China in October 2022, citing national security concerns, and further tightened the rules in 2023. In September 2025, the Trump administration revoked special export exemptions for certain SK Hynix, Samsung and Intel facilities in China. The US has since granted an annual license to Samsung and SK Hynix for sending chipmaking equipment to their plants in China.

Commerce Secretary Howard Lutnick said in July that he wanted Samsung and SK Hynix to build chip plants in the US and that he was in talks with both companies. Solidigm is also said to be preparing for a potential initial public offering in 2027.

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Analysis

Why This Matters

  • The outcome of Solidigm's request could set a precedent for how other chipmakers balance US export controls with their China operations, affecting global NAND supply and prices.
  • SK Hynix's US factory decision carries implications for American semiconductor manufacturing goals and job creation.
  • The case underscores the ongoing strategic tension between restricting technology transfer to China and encouraging foreign investment in US production.

Background

US export controls on advanced chipmaking equipment to China have been a central pillar of technology competition between Washington and Beijing. The Commerce Department imposed initial restrictions in October 2022, citing national security, and further tightened them in 2023. The Trump administration revoked special exemptions for some foreign-owned facilities in China in September 2025, but later issued annual licenses to Samsung and SK Hynix. The US government has simultaneously pushed foreign chipmakers to expand manufacturing on American soil, with Commerce Secretary Lutnick publicly pressing SK Hynix and Samsung.

Key Perspectives

SK Hynix and Solidigm: The company wants to maintain and potentially expand its China production capacity while also committing to a US factory, seeking to navigate both regulatory requirements and market access. US Government: Wants to restrict China's access to advanced semiconductor equipment while using export licenses as leverage to encourage chipmakers to build facilities in the US. Critics and skeptics: Some argue that allowing continued equipment shipments to China weakens the effectiveness of export controls, while others caution that overly restrictive policies could drive companies away from US investment entirely.

What to Watch

  • Whether the US Commerce Department approves Solidigm's request and on what terms.
  • If Solidigm formally announces a location for its planned US factory.
  • Any further adjustments to US export control rules for chipmaking equipment to China.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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