SK hynix-owned Solidigm is plotting a new $45 billion flash memory factory for the US, report claims
Solidigm, an American subsidiary of SK hynix, is in discussions about potentially investing $45 billion in a new flash chip factory that would be built in the United States.
SK hynix-owned Solidigm, an American subsidiary of the global flash chip maker, is reportedly in talks with the Commerce Department about constructing a $45 billion factory in the United States, according to Bloomberg. However, there is a condition: Solidigm seeks permission to export equipment to upgrade its existing plant in Dalian, China.
The company has reportedly informed officials that these upgrades would enable the Chinese plant to finance the U.S. facility. It remains uncertain how the proposal was received by the Commerce Department. The U.S. government is keen on promoting domestic manufacturing, including for chips used in computers and data centers, citing national security concerns.
The potential for exporting equipment to China for plant upgrades is restricted, and similar export limits apply to high-end AI data center components. The Dalian facility manufactures NAND flash memory, used in diverse devices, including data centers. Global NAND production is a significant concern, with manufacturers shifting focus from consumer-focused memory to data center-grade components, causing global price hikes.
SK hynix recently canceled a planned Solidigm IPO due to volatile market conditions. Solidigm has also indicated that its overall U.S. investment could reach $100 billion, with a planned New York construction in 2027.
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