SK Hynix's New York chip plans hit snag over US restrictions on China, sources say

U.S. officials have delayed the approval of American chipmaking equipment necessary for SK Hynix's expansion of production in China, hindering the South Korean chipmaker's plans for new memory-chip plants in New York, according to sources familiar with the situation. SK Hynix is requesting U.S. export licenses to equip its Dalian plant, claiming that increased output there would aid in funding its anticipated U.S. expansion.

However, the Commerce Department has not yet granted the new licenses, as reported by the sources. SK Hynix's Solidigm unit intends to invest approximately $45 billion and construct two NAND plants in Marcy, New York, with potential investments reaching about $100 billion over time. NAND refers to memory that preserves data even when power is off and is utilized for storage in data centers.

The negotiations pose a policy dilemma for the Trump administration, as they grapple with how far they are willing to compromise national security restrictions meant to prevent U.S. technology from supporting China's military, in order to attract foreign investment and bring chipmaking operations back to the United States. Ultimately, none of these developments will unfold as planned.