SK Hynix unit seeks US approval for equipment exports to China in exchange for building a US factory

Solidigm, the flash memory unit of South Korean chipmaker SK Hynix, is seeking U.S. government approval to send American-made chipmaking equipment to its factory in Dalian, China, Reuters reported, citing anonymous sources. According to the report, this is a condition for the company to keep going with plans to build a semiconductor plant in the United States. The matter shows how big chipmakers must operate between U.S. and Chinese technology restrictions.

Plans in the US and China

Solidigm is reportedly preparing to build a NAND flash memory chip factory in the U.S. and is considering upstate New York as a possible site. NAND chips are used mainly in solid-state drives, found in laptops, smartphones and AI data centers.

Reuters' sources say Solidigm wants to install more equipment in spare space at SK Hynix's Dalian factory to increase NAND output. SK Hynix told TechCrunch it is not seeking to expand capacity at its Dalian Mod B facility, completed in 2023. The company added that the installation is being carried out in consultation with, and under authorization from, the U.S. government.

Background: export controls

In October 2022 the U.S. imposed sweeping restrictions on exports of advanced chips and chipmaking equipment to China, citing national security, and tightened the rules further in 2023. In September 2025 the Trump administration revoked special export exemptions for certain SK Hynix, Samsung and Intel facilities in China. Since then Washington has granted Samsung and SK Hynix an annual license to ship equipment to their Chinese plants.

The U.S. has also been pushing foreign chipmakers to build and expand manufacturing 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.

Market situation

A global component shortage, driven by surging demand for AI data centers, has pushed up prices for memory chips and SSDs. Research firm Trendforce expects NAND prices to rise 15% to 20% in the fourth quarter. Solidigm is reportedly preparing for a 2027 U.S. IPO that could raise about $10 billion and value it at up to $100 billion.