{
  "id": 14597535,
  "title": "SK Hynix's US plant comes with a China condition",
  "url": "https://urgent.news/2026/10/15/sk-hynixs-us-plant-comes-with-a-china-condition",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-15T02:03:27.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/news/international/business/sk-hynix-seeks-us-nod-to-expand-china-chip-output-ties-approval-to-us-plant-report/articleshow/134955363.cms"
  },
  "original_language": "en",
  "account": "South Korean chipmaker SK Hynix is requesting US approval to export semiconductor equipment to China as a prerequisite for establishing a factory within the country, according to two sources familiar with the situation. The Trump administration is encouraging SK Hynix, Samsung, and other global chipmakers to construct plants in the US to bolster domestic manufacturing and generate employment opportunities.\n\nSolidigm, a US subsidiary of SK Hynix, aims to equip its Dalian, China-based NAND flash memory production facility with new machinery in an unused space at their current Dalian site. NAND flash memory is employed in solid-state drives utilized in data centers for AI and cloud computing applications. The Dalian NAND facility currently utilizes equipment from prominent US semiconductor manufacturing firms, including Lam Research, Applied Materials, and KLA.\n\nSolidigm's proposal to acquire supplementary equipment in Dalian and linking its plan to construct a new US-based NAND factory to securing an export license has not been widely reported. SK Hynix has not yet provided a response to a request for comments, while Solidigm declined to comment on the matter. The US Department of Commerce, responsible for overseeing export controls and negotiating semiconductor manufacturing facility investments, likewise did not respond to a request for comment.\n\nThe US has imposed restrictions on exporting chipmaking equipment to China as part of efforts to limit Beijing's advancement in cutting-edge semiconductors utilized in AI and military applications, which Washington considers vital to national security. Reuters previously reported that Solidigm was contemplating building a NAND flash memory chip factory in the US. Establishing fabrication plants, commonly referred to as fabs, requires years and billions of dollars to complete.\n\nExpanded operations from China would assist Solidigm in financing a NAND facility in the US, one source explained, and serve as a temporary solution to boost US production. Solidigm is also evaluating an initial public offering, potentially as early as the following year, to raise funds that could finance its US factory, stated another source.\n\nNAND flash memory markets have been experiencing a downturn in recent years, with pricing rising sevenfold since mid-2023, according to Walt Coon, a memory industry expert at TechInsights. The Commerce Department revoked exemptions granted to Hynix and Samsung, enabling them to operate without obtaining licenses for US equipment in their Chinese fabs, attributing the decision to a loophole during the Biden administration. The department stated it would grant export licenses to allow the companies to operate their existing fabs in China but has not granted licenses for equipment to expand capacity or upgrade technology. In December, the department issued a license for SK Hynix's Dalian facility that capped the quantity of equipment.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}