SK Hynix seeks US export approval for China plant to enable US factory build
Solidigm is negotiating US authorization to ship equipment to its Chinese facility as a condition for constructing a new NAND plant in America.
Key points
- SK Hynix’s Solidigm unit seeks US approval to send chipmaking equipment to its Dalian, China facility.
- The request is linked to plans for building a new NAND flash memory factory in the United States.
- SK Hynix states the equipment installation is authorized by the US government and does not expand capacity.
SK Hynix’s flash memory subsidiary Solidigm is seeking United States approval to export American chipmaking equipment to its manufacturing facility in Dalian, China. According to Reuters, this export request is being treated as a condition for continuing the construction of a new semiconductor factory in the US.
The company is reportedly evaluating upstate New York as a potential site for the new NAND flash memory production plant. Reuters sources indicated that Solidigm intends to install additional equipment in available space at the Dalian site to increase NAND chip output. This move occurs as the company navigates complex regulatory requirements between Washington and Beijing.
Regulatory and Market Context
SK Hynix told TechCrunch that it is not attempting to expand capacity at its Dalian Mod B facility, which was completed in 2023. The chipmaker emphasized that the equipment installation is being conducted under authorization from the US government and in consultation with officials. This clarification comes amid strict US export controls on advanced semiconductor technology.
Washington first imposed sweeping restrictions on exports of advanced chips and manufacturing equipment to China in October 2022, citing national security concerns. The rules were further tightened in 2023. In September 2025, the Trump administration revoked special export exemptions for certain facilities in China operated by SK Hynix, Samsung, and Intel.
Since those revocations, the US government has granted annual licenses to Samsung and SK Hynix for sending specific chipmaking equipment to their Chinese plants. Commerce Secretary Howard Lutnick stated in July that he wanted both Samsung and SK Hynix to build chip plants in the United States and confirmed he was in talks with both companies.
Industry Impact and Financial Outlook
NAND flash chips are essential components for solid-state storage drives used in laptops, smartphones, and AI data centers. A global component shortage driven by skyrocketing demand for AI infrastructure has increased prices for high-speed RAM and SSDs. Research firm TrendForce expects NAND prices to rise between 15% and 20% in the fourth quarter.
Solidigm is reportedly preparing for an initial public offering in the US in 2027. The potential listing could raise approximately $10 billion and value the unit at up to $100 billion. The outcome of the current export negotiations may influence the timeline and scale of both the US factory construction and the financial strategy.
What should you do?
Security and technology professionals should monitor official announcements from SK Hynix and the US Department of Commerce regarding export license approvals. Track changes in the supply chain for NAND flash memory, particularly price fluctuations reported by firms like TrendForce. Watch for updates on the proposed US manufacturing facility in upstate New York. Review internal procurement strategies for solid-state drives in light of potential market shifts.
What to do and how to stay safe: SK Hynix
- Monitor official press releases from SK Hynix and the US Commerce Department for updates on export licenses.
- Track market reports from firms like TrendForce for changes in NAND flash memory pricing and availability.
- Evaluate your organization's supply chain dependencies on solid-state storage drives for potential disruptions.
- Stay informed about the progress of the proposed semiconductor manufacturing facility in the United States.
Step-by-step guide: Mobile Device Security: How to Protect Data Beyond Passwords
General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
Is SK Hynix expanding its manufacturing capacity in China?
No, SK Hynix stated it is not seeking to expand capacity at its Dalian Mod B facility and is installing equipment under US authorization.
Why is Solidigm seeking US export approval?
The approval is reportedly a condition for continuing the construction of a new NAND chip factory in the United States.
Where might the new US factory be located?
Solidigm is reportedly considering upstate New York as a potential location for the new manufacturing facility.
