Solidigm, the American subsidiary of South Korea's SK hynix, is in talks with the US Commerce Department over a $45 billion flash memory plant in the United States, while seeking approval to export equipment to upgrade its existing factory in Dalian, China, according to Bloomberg, which cited unnamed sources.
Bloomberg reported that, according to unnamed sources, Solidigm has told officials the Dalian upgrades would allow the Chinese plant to help finance the US counterpart. It was unclear how the proposal had been received, or whether the Commerce Department was inclined to agree. Solidigm has also reportedly said its total US manufacturing investment could eventually reach $100 billion, with construction in New York penciled in for 2027.
The Dalian factory produces NAND flash memory, a type of storage used in devices from smartphones to data centres. The request touches on the US government's approach to China: it has encouraged domestic manufacturing, with national security regularly cited as a key reason, and has restricted exports of chip-making technology to China. Similar restrictions apply to high-end AI data centre components, and reports have described a black market in Nvidia chips, including recent reports that Nvidia's Blackwell Ultra B300 GPUs were being used in China Telecom data centres.
The talks come as global NAND production is a subject of attention. Samsung and SK hynix are upgrading their Chinese factories to produce more chips for AI data centres, while manufacturers have slashed production of consumer-focused memory in favour of more lucrative data centre-grade components, pushing up prices. The volatility was given as one reason SK hynix cancelled a planned Solidigm IPO earlier this week.
In its latest earnings call, Solidigm reported revenues of $75 billion, operating profit of $60 billion and net income of $28 billion. It made no mention of its Dalian plant or a planned US investment, but warned that memory shortages are set to last through 2030.
Analysis
Why This Matters
- A $45 billion US factory would be a major expansion of American memory chip manufacturing and a boost to efforts to bring chip production home.
- The request to ship equipment to China puts the investment at the centre of US-China export control policy.
- The reported warning that memory shortages could last through 2030 points to continued price pressure for consumers and data centre operators.
Background
NAND flash memory is a widely used type of storage, found in consumer devices and data centre servers. Demand for high-end memory has grown sharply with the expansion of AI data centres, leading manufacturers to favour data centre-grade chips over consumer memory and driving up prices. The United States has restricted the export of advanced chip-making technology to China on national security grounds while pushing to expand domestic semiconductor manufacturing. Solidigm is the American subsidiary of SK hynix, one of the world's largest memory chip makers.
Key Perspectives
Solidigm: has reportedly told the Commerce Department that exporting equipment to upgrade its Dalian factory would allow the Chinese plant to help finance its planned US operation, and has floated eventual US investment of up to $100 billion.
US government: has been keen to drive domestic manufacturing and regularly cites national security as a key reason for restricting exports of chip-making technology to China.
What to Watch
- Whether the Commerce Department approves the equipment export request, which would signal how the proposal is being received.
- Whether construction of the New York plant begins in 2027 as penciled in.
- How NAND flash supply and prices move, given the reported shift toward data centre-grade memory and warnings that shortages may last through 2030.
Checked
12 claims in this story checked against 1 source: 9 supported.
Show each claim
- SupportedSolidigm is in talks with the US Commerce Department over a $45 billion US flash-memory plant.Latest from Tom's Hardware: “Solidigm, an American subsidiary of SK hynix, one of the biggest flash chip makers on the planet, is reportedly in talks with the Commerce Department over plans to invest $45 billion in a new plant to be built in the United States.”
- SupportedSolidigm is seeking approval to export equipment to upgrade its existing Dalian factory.Latest from Tom's Hardware: “Solidigm wants to be given the go-ahead to export equipment to upgrade its existing plant in Dalian, China.”
- SupportedBloomberg reported the proposal based on unnamed sources.Latest from Tom's Hardware: “But, Bloomberg reports, there's a catch — Solidigm wants to be given the go-ahead to export equipment to upgrade its existing plant in Dalian, China. The company has purportedly told officials that the upgrades would allow the Chinese plant to then help finance the cost of its U.S.-based counterpart, according to unnamed sources.”
- SupportedSolidigm has reportedly said its total US manufacturing investment could eventually reach $100 billion.Latest from Tom's Hardware: “Solidigm has also allegedly told the Commerce Department that its total investment in U.S. manufacturing could reach $100 billion eventually”
- SupportedConstruction in New York is penciled in for 2027.Latest from Tom's Hardware: “with construction in New York penciled in for 2027.”
- SupportedSolidigm said Dalian upgrades would allow the Chinese plant to help finance the US plant.Latest from Tom's Hardware: “The company has purportedly told officials that the upgrades would allow the Chinese plant to then help finance the cost of its U.S.-based counterpart, according to unnamed sources.”
- Not in the sourcesSK hynix is South Korean.Latest from Tom's Hardware: “Solidigm, an American subsidiary of SK hynix”
- Partly supportedThe Dalian factory produces NAND flash memory, used in devices including smartphones and data centres.Latest from Tom's Hardware: “The Dalian factory produces NAND flash memory, the likes of which are used in everything from relatively simple devices to full-blown data centers.”
- Partly supportedRecent reports said Nvidia Blackwell Ultra B300 GPUs were being used in China Telecom data centres.Latest from Tom's Hardware: “Earlier this month, it was reported that some of Nvidia's powerful Blackwell Ultra B300 GPUs are being used in China Telecom data centers”
- SupportedManufacturers cut consumer-focused memory production in favour of data-centre-grade components, pushing prices up globally.Latest from Tom's Hardware: “Manufacturers have already slashed production of consumer-focused memory in favor of the more lucrative data center-grade components, causing prices to spike globally.”
- SupportedMarket volatility was given as one reason SK hynix cancelled a planned Solidigm IPO earlier that week.Latest from Tom's Hardware: “This volatility in the market as a whole was given as one of the reasons SK hynix chose to cancel a planned Solidigm IPO earlier this week.”
- SupportedAt its latest earnings call, Solidigm reported revenue of $75 billion, operating profit of $60 billion and net income of $28 billion.Latest from Tom's Hardware: “The company is fresh from its latest earnings call, where it announced revenues of $75 billion with $60 billion in operating profit, and $28 billion in net.”