SK hynix faces dilemma between Solidigm investment, Chinese plant expansion
SK hynix is facing a growing dilemma over U.S. export controls on advanced semiconductor equipment for its NAND flash plant in China, as Washington's reluctance to approve equipment shipments slows the chipmaker's plans to generate revenue from the Chinese plant to finance new production facilities for its NAND flash unit Solidigm in the United States. Reuters reported on Wednesday that U.S.…
SK hynix finds itself in a perplexing position regarding export controls on advanced semiconductor equipment for its NAND flash plant in China. The United States is hesitant to approve shipments of the necessary American chipmaking equipment, which is delaying the company's efforts to generate revenue from the Chinese plant and fund the expansion of its NAND flash unit, Solidigm, based in the United States.
The Dalian plant, situated in China, serves as a crucial production center for Solidigm. It manufactures NAND flash memory and enterprise solid-state drives, which are integral components in smartphones and data centers. SK hynix is eager to resume its investment in the second Dalian plant to increase NAND production capacity.
In 2023, the U.S. Commerce Department granted SK hynix Validated End User status, enabling the company to bring American chipmaking equipment into its Chinese plants without restrictions. However, this status was revoked at the end of 2025 and replaced with annual export licenses that necessitate ongoing approval from U.S. authorities.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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