SK Hynix bargains for chip equipment exports to its China facility in return for building a factory in US

Solidigm, the flash memory unit of SK Hynix, is asking the U.S. government for permission to ship American chipmaking equipment to a factory in Dalian, China, according to Reuters, which cited anonymous sources. The request is tied to the company's plans to continue building a semiconductor factory in the United States. Solidigm is weighing upstate New York as a possible location for a NAND flash memory chip plant.

NAND flash chips are mainly used in solid-state drives, which appear in laptops, smartphones and AI data centers. Demand from AI data centers has soared, and a global component shortage has pushed up prices for data center parts including high-speed RAM chips and SSDs. Research firm TrendForce expects NAND prices to climb 15% to 20% in the fourth quarter.

Reuters reported that Solidigm wants to put more chipmaking equipment into spare space at SK Hynix's Dalian facility in China in order to raise NAND output. SK Hynix told TechCrunch that it is not trying to expand capacity at its Dalian Mod B facility, which was finished in 2023. The company said the equipment installation is happening with consultation and authorization from the U.S. government.

Washington imposed broad limits on exports of advanced chips and chipmaking equipment to China in October 2022, citing national security, and tightened the rules in 2023. In September 2025, the Trump administration withdrew special export exemptions for certain SK Hynix, Samsung and Intel facilities in China. The U.S. has since given Samsung and SK Hynix an annual license to send chipmaking equipment to their plants in China.

The U.S. has been pressing foreign chipmakers to build and grow manufacturing operations on American soil. In July, Commerce Secretary Howard Lutnick said he wanted Samsung and SK Hynix to build chip plants in the country, and that he was holding talks with both companies. Solidigm is reportedly preparing for a 2027 U.S. IPO that could raise about $10 billion and value the company at as much as $100 billion.

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