SK Hynix bargains for chip equipment exports to its China facility in return for building a factory in US
Quick Look
SK Hynix's Solidigm unit is seeking U.S. government approval to send American chipmaking equipment to its Dalian, China factory to support NAND flash production, as it considers building a semiconductor facility in upstate New York amid rising AI-driven demand and ongoing U.S.-China tech tensions.
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Why It Matters
The U.S. has imposed export restrictions on advanced chips and chipmaking equipment to China since October 2022, citing national security concerns, with further tightening in 2023 and revocation of special exemptions in September 2025. The U.S. is also pushing foreign chipmakers to expand manufacturing in America.
SK Hynix appears to be navigating choppy U.S.-China chipmaking waters. The company’s flash memory unit, Solidigm, is seeking U.S. approval to send American chipmaking equipment to its factory in Dalian, China, as a condition to continue building a semiconductor factory in the U.S, Reuters reported, citing anonymous sources.
Solidigm has been reportedly chalking up plans to build a NAND flash memory chip factory in the U.S., and is considering upstate New York as a potential location for the facility.
NAND flash chips are primarily used in solid-state storage drives, which are employed in everything from laptops and smartphones to AI data centers. But the global component shortage thanks to skyrocketing demand for AI data centers has driven up prices for everything that goes into data centers, including high-speed RAM chips as well as SSDs. Research firm Trendforce expects NAND prices to rise 15% to 20% in the fourth quarter.
Reuters cited its sources as saying that Solidigm wants to install more chipmaking equipment in spare space at SK Hynix’s Dalian factory in China to boost NAND chip production, according to Reuters.
SK Hynix told TechCrunch it is not seeking to expand capacity at its Dalian Mod B facility, which was completed in 2023. The chip giant added that the equipment installation is being carried out in consultation with and under authorization from the U.S. government.
Washington first imposed sweeping restrictions on advanced chips and chipmaking equipment exports to China in October 2022, citing national security concerns, and further tightened the rules in 2023. Then in September 2025, the Trump administration revoked special export exemptions for certain SK Hynix, Samsung and Intel facilities in China. The U.S. has since granted an annual license to Samsung and SK Hynix for sending chipmaking equipment to their plants in China.
The U.S. has also been pushing foreign chipmakers to build and expand their manufacturing facilities in America. In July, Commerce Secretary Howard Lutnick said he wanted Samsung and SK Hynix to build chip plants in the country, and that he was in talks with both companies.
What to Watch
AI outlook — possibilities, not facts
The U.S. government will approve Solidigm's request to send chipmaking equipment to its Dalian factory
Likely · Within weeks
SK Hynix will proceed with plans to build a NAND flash memory chip factory in upstate New York
Possible · Within months
Open Questions
- What specific equipment does Solidigm seek to transfer to Dalian?
- What is the timeline for the potential NAND factory in upstate New York?
- How will the U.S. government's decision impact SK Hynix's broader semiconductor strategy?
