Proposed US Factory and China Exports
Solidigm, an American subsidiary of SK hynix, is reportedly in talks with the Commerce Department over plans to invest $45 billion in a new plant to be built in the United States. However, the proposal includes a condition: Solidigm wants approval to export equipment to upgrade its existing plant in Dalian, China. The company has purportedly indicated that the upgrades would allow the Chinese facility to help finance the cost of its U.S.-based counterpart, according to sources familiar with the discussions.
Trade Restrictions and Memory Demand
U.S. export controls restrict certain technologies from being shipped to China due to national security concerns regarding advanced hardware and data center components. Meanwhile, global NAND flash production remains a focal point as manufacturers like Samsung and SK hynix adjust output to prioritize data center-grade components over consumer-focused memory, contributing to broader market volatility.
The Dalian factory produces NAND flash memory utilized across various computing environments, ranging from standard devices to enterprise data centers. The negotiations arrive amid broader shifts in the memory market, where tightening supplies and rising demand for AI infrastructure have prompted manufacturers to realign their production capacities.
Alongside the initial $45 billion proposal, Solidigm has reportedly indicated that its total long-term U.S. manufacturing investment could eventually reach $100 billion, with potential construction in New York slated for 2027. Industry forecasts suggest that tight memory supply conditions may persist for several years.
