SK Hynix bargains for chip equipment exports to China for US plant
Solidigm seeks US approval to send chipmaking equipment to its Dalian factory in exchange for building a new NAND flash plant in upstate New York.
Stock photo for illustration only, not from the actual event
- Solidigm seeks US approval to ship chipmaking gear to SK Hynix's Dalian facility in China.
- The move is tied to a proposal for building a new NAND flash memory chip plant in upstate New York.
- Trendforce projects NAND chip prices to climb 15% to 20% in the fourth quarter.
- Solidigm is preparing for a 2027 U.S. IPO targeting around $10 billion in fundraising.
SK Hynix is navigating complex U.S.-China semiconductor trade relations as its flash memory unit, Solidigm, pursues U.S. government authorization to export American chipmaking equipment to its factory located in Dalian, China, according to Reuters reports citing anonymous sources. This equipment request serves as a strategic condition tied to the company's parallel plans to construct a semiconductor manufacturing facility in the United States.
Solidigm has been actively mapping out plans to build a NAND flash memory chip production facility domestically, with upstate New York currently under consideration as the potential site. NAND flash chips form the backbone of solid-state storage drives used across modern hardware ecosystems, ranging from notebook computers and smartphones to massive artificial intelligence data centers.
The explosive global demand for AI data centers has triggered component shortages and driven up prices for essential infrastructure parts, including high-speed RAM and solid-state drives. Market research firm Trendforce has indicated expectations that NAND prices will appreciate by 15% to 20% throughout the fourth quarter.
Stock photo for illustration only, not from the actual event
Sources cited by Reuters indicated that Solidigm intends to install additional manufacturing equipment into vacant floor space at SK Hynix’s Dalian Mod B factory, which was finished in 2023, to scale up NAND output. However, SK Hynix informed TechCrunch that it is not seeking capacity expansion at the Dalian facility, emphasizing that any equipment installation is being executed in consultation with and under authorization from U.S. regulators.
This development underscores Washington's broader industrial policy aimed at reshoring semiconductor manufacturing capacity. Following sweeping export controls on advanced chips introduced in October 2022, subsequent tightening in 2023, and the revocation of special facility exemptions in September 2025, major chipmakers operating in China have relied on annual licensing agreements while balancing American pressure to establish domestic production footprints.
U.S. Commerce Secretary Howard Lutnick publicly expressed intentions in July regarding ongoing discussions with both Samsung and SK Hynix to incentivize domestic fab construction. Alongside these trade maneuvers, Solidigm is reportedly prepping for an initial public offering in the U.S. by 2027, eyeing a valuation of up to $100 billion while looking to raise approximately $10 billion.
Source: TechCrunch
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