Solidigm, the U.S. subsidiary of SK hynix (000660), is pressing the U.S. government to allow additional shipments of American chipmaking equipment to its plant in China as a condition for building a new semiconductor fab in the United States, Reuters reported on the 14th.
Citing multiple sources, Reuters said Solidigm has applied for additional export licenses for U.S.-made chip equipment in order to raise output at the Dalian plant in China. Solidigm is linking its plan to build a new NAND flash memory fab in the United States to whether those licenses are approved, according to the report. Reuters had earlier reported that Solidigm was weighing a NAND flash plant in the United States, with upstate New York cited as a leading candidate site.
The site where Solidigm is seeking to expand output is SK hynix's Dalian plant in China, according to the report. The facility houses a production line known as Mod B, built in 2023, but equipment installation was never completed at the time because of a downturn in the memory chip market. Some manufacturing tools are now in place, but a substantial amount of space remains for additional equipment, sources said. Solidigm intends to bring in new tools there to lift NAND flash output. The Dalian plant uses equipment from U.S. suppliers including Lam Research and Applied Materials.
Expanding output in China is also expected to help secure funding for the new U.S. plant. A source said raising production at Dalian would not only help Solidigm cover the cost of building the U.S. fab but could also serve as a bridgehead for expanding supply within the United States.
The United States tightly controls exports of chipmaking equipment to China to curb the country's development of advanced semiconductor technology. Washington is particularly wary, on national security grounds, of advanced technology with artificial intelligence and military applications being transferred to China.
The U.S. Commerce Department last year revoked earlier approvals that had allowed SK hynix and Samsung Electronics (005930) to ship U.S.-made equipment to their plants in China without obtaining individual export licenses. The department at the time described the arrangement as a loophole left over from the Biden administration. It said it would instead grant export licenses only for equipment needed to operate existing facilities, while in principle withholding approval for tools intended to expand production capacity or upgrade technology.
Reuters said SK hynix did not immediately respond to a request for comment and that Solidigm declined to comment on the matter. The U.S. Commerce Department also did not offer a position.