South Korea's SK Hynix is seeking Washington's approval to export US chipmaking equipment to expand production in China, two people familiar with the matter said on Wednesday. The people said SK Hynix is making construction of a US factory conditional on that approval. Solidigm, the US unit of SK Hynix, wants to install new equipment to produce NAND chips in unused space at SK Hynix's Dalian site. A global memory chip shortage has driven up prices. NAND flash memory is used in solid-state drives installed in data centers for AI and cloud computing. The Dalian NAND facility uses tools from US equipment makers including Lam Research, Applied Materials and KLA.
The Trump administration is pressing SK Hynix, Samsung and other foreign chipmakers to build US plants to rebuild manufacturing capacity and create jobs. Solidigm was considering building a US NAND flash memory factory last month. Semiconductor fabrication plants take years and billions of dollars to build. One of the people said expanded production in China would help Solidigm fund a US NAND facility and support production until more chips could be produced in the US. Another source said Solidigm is also weighing an initial public offering as early as next year. The source said proceeds could help finance Solidigm's US factory.
The US has restricted chipmaking equipment exports to China to slow the development of advanced semiconductors used in AI and military applications. Washington views those technologies as critical to national security. Last year, the Commerce Department revoked authorizations that exempted SK Hynix and Samsung from applying for US equipment licenses for factories in China. The department called the authorizations a "Biden-era loophole." The department said the department would grant export licenses allowing the companies to operate existing factories in China. However, the department said the department did not expect to approve equipment licenses to expand capacity or upgrade technology. In December, the department issued a 2026 license for SK Hynix's Dalian site that limited equipment quantities.
One source said SK Hynix built a fabrication space known as Mod B at the Dalian facility in 2023. SK Hynix did not complete the equipment installation because of the memory market downturn. Two sources said Mod B contains some chipmaking tools and has room for much more equipment. One person said the Commerce Department has not yet issued a license for more US-made equipment and technology in 2027. The person said Solidigm has also applied for an export license to buy additional tools for Mod B.
TechInsights memory industry expert Walt Coon said the NAND market is booming after a downturn a few years ago. Coon expects the NAND market to remain tight over the next few years. Coon said pricing has increased sevenfold since mid-2023. SK Hynix is separately in talks with Intel to lease part of a long-planned chipmaking facility in Ohio. SK Hynix has also broken ground on an advanced packaging plant for high bandwidth memory in Indiana. SK Hynix ranks behind Samsung Electronics among the world's top two NAND flash memory suppliers. Counterpoint Research said China's NAND flash maker YMTC rose to third place in the second quarter of 2026.
SK Hynix did not immediately respond to a request for comment. Solidigm declined to comment on the matter. The Commerce Department, which oversees export controls and has been negotiating semiconductor manufacturing investments, did not respond to a request for comment.
SK Hynix Conditions US Factory on US Equipment Export Approval to China
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on-chain news reveals SK Hynix is seeking U.S. approval to export chipmaking equipment to China, with a U.S. factory dependent on that green light. Solidigm, its U.S. unit, plans to install new NAND production tools at Dalian, currently using equipment from Lam Research and Applied Materials. The U.S. revoked export exemptions for SK Hynix and Samsung in 2025. Solidigm is also eyeing an IPO to fund its U.S. expansion. New token listings remain a key focus for investors tracking global tech and crypto developments.
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