SK hynix Investment in New York May Face Uncertainty
The $45 billion investment plan for a semiconductor factory in New York, which was being promoted by Solidigm, SK hynix’s U.S. NAND flash sub-subsidiary, has been stalled.Reuters reported on Nov. 3 (local time) that the U.S. Department of Commerce is withholding export licenses for American advanced
SK hynix, the U.S. NAND flash sub-subsidiary of Solidigm, encountered an investment roadblock in New York as the U.S. Department of Commerce has withheld export licenses for advanced semiconductor equipment to SK hynix's Dalian factory in China. The $45 billion plan to build two factories in the U.S. had been stalled due to the U.S. government's export regulations.
SK hynix had hoped to boost production at the Dalian factory to fund the U.S. factories, but the export license denial has affected the investment strategy. Despite multiple consultations with the U.S. Department of Commerce, Solidigm executives have yet to find a solution. The company is now considering alternative sites for the NAND factory, but no final decision has been made.
U.S. Deputy Secretary of Commerce Jeffrey Kessler maintains the stance that equipment exports to China cannot be permitted. The outcome of this situation is seen as a dilemma for the Trump administration, balancing the need for domestic investment and the control of technology in China.
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