Sources: Solidigm, SK Hynix's US unit, seeks US government approval to export US chipmaking equipment to Dalian, China, as a condition for building a US factory (Reuters)

South Korea's SK Hynix is reportedly seeking approval from the US government to export US chipmaking equipment to China as a prerequisite for constructing a factory on American soil, according to sources. The Trump administration is encouraging foreign chipmakers, including SK Hynix and Samsung, to build plants in the US in order to strengthen domestic manufacturing and generate employment.

In response to the current global memory chip shortage, which has led to skyrocketing prices, Solidigm, the US subsidiary of SK Hynix, aims to install new equipment at its Dalian, China, location to manufacture NAND chips in idle space. NAND flash memory, utilized in solid-state drives employed in data centers for artificial intelligence and cloud computing, is the focus of this investment.

The Dalian NAND facility currently utilizes tools from prominent US semiconductor equipment manufacturers like Lam Research, Applied Materials, and KLA. While Solidigm's pursuit of a US export license for supplementary equipment in Dalian and linking its US NAND factory plan to the license have not been disclosed before, SK Hynix has not yet commented on the matter.

Solidigm also declined to comment. The US Department of Commerce, which regulates export controls and has been deliberating semiconductor manufacturing facility investments, has yet to respond to inquiries. In an effort to curb Beijing's advancement in cutting-edge semiconductors utilized in AI and military applications, crucial for national security, the US has imposed restrictions on exports of chipmaking equipment to China.

Last month, Reuters disclosed that Solidigm was contemplating the establishment of a NAND flash memory chip factory in the US. Building a fabrication plant, or "fab" as it is known in the industry, is a lengthy and costly endeavor that necessitates years and billions of dollars. Increasing production in China would assist Solidigm in funding a NAND facility in the US, providing a financial bridge to producing more in the US.

Solidigm is also contemplating an initial public offering, potentially as early as next year, which could raise funds to finance its US factory, according to another source. Following a memory market slump a few years ago, the NAND market is currently experiencing a surge and is projected to remain constrained in the coming years, as stated by Walt Coon, a memory industry expert at TechInsights.

Prices have surged sevenfold since mid-2023. In December, the Commerce Department rescinded authorizations granted to Hynix and Samsung, exempting them from needing to apply for licenses for US equipment in their Chinese fabs, attributing this decision to a "Biden-era loophole." Instead, the Commerce Department stated it would issue export licenses to enable the companies to operate their existing fabs in China but did not anticipate approving licenses for equipment to expand capacity or upgrade technology.

In December, the department issued a 2026 license for SK Hynix’s Dalian site that restricted the quantity of equipment. SK Hynix's Dalian facility houses a fab space called Mod B, built in 2023, with room for additional chipmaking tools. The Commerce Department has not yet issued a license for more US-made equipment and technology in 2027.

Solidigm has also submitted an application for an export license to procure additional tools for Mod B. SK Hynix is concurrently engaging in discussions with Intel regarding the leasing of a portion of its long-planned chipmaking facility in Ohio. As the top two global NAND flash memory suppliers, SK Hynix trails Samsung Electronics.

Additionally, the South Korean company has initiated construction of an advanced packaging plant for high-bandwidth memory in Indiana. China's NAND flash manufacturer, YMTC, has risen to No. 3 in the second quarter of 2026, according to Counterpoint Research.