ChainCatcher report, according to Reuters, South Korean chipmaker SK Hynix plans to finance its new memory chip factory in New York by expanding production in China, but delays in obtaining U.S. export licenses for required American equipment have hindered its investment plans in the United States. The company is currently applying for U.S. export licenses to equip its Dalian facility, believing that increasing output and advancing NAND chip manufacturing technology at this plant will help maintain competitiveness and generate revenue to support the U.S. factory project. Two informed sources said Solidigm, a subsidiary of SK Hynix, plans to invest approximately $45 billion to build two NAND flash memory factories in Massena, New York, with long-term investment potentially reaching around $100 billion. Negotiations are ongoing, and approval of the Dalian expansion plan remains critical to the New York project. Since late August, Solidigm executives have met nearly ten times with U.S. Department of Commerce officials, including meetings with Secretary Raimondo and Deputy Secretary Kessler. Kessler reiterated last week that the U.S. does not wish to permit additional American chip manufacturing equipment to be exported to China for technological upgrades or capacity expansion. The Department of Commerce has not yet formally denied the license application for exporting equipment to existing idle cleanrooms at the Dalian facility. Solidigm stated it is exploring potential global locations for building NAND flash wafer fabs and has not yet made any decisions on specific actions. On October 23, SK Hynix said Solidigm had previously considered an IPO to help raise funds for U.S. production facilities, but has paused evaluation of this option due to recent market conditions and stock price movements.
SK Hynix's U.S. NAND plant faces delays due to U.S. export restrictions.
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Summary
SK Hynix’s U.S. NAND plant is experiencing delays due to U.S. export restrictions on equipment for its Dalian facility. The company is seeking U.S. export licenses to expand in China, a move linked to its $45 billion investment in New York NAND factories. U.S. officials, including Commerce Deputy Secretary Kessler, have resisted relaxing restrictions on chip equipment shipments to China. Solidigm, SK Hynix’s subsidiary, has met with U.S. officials nearly ten times since late August and is evaluating global sites for NAND wafer production. On-chain reports indicate companies are closely monitoring regulatory changes. New token listings have yet to reflect the broader impact of these supply chain challenges.
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