SK hynix's Solidigm Eyes $45 Billion U.S. Flash Memory Plant, Seeks Approval for China Factory Upgrades
Solidigm, the U.S.-based flash memory manufacturer owned by South Korea’s SK hynix, is reportedly in discussions with the U.S. Department of Commerce regarding a proposed $45 billion investment in a new semiconductor manufacturing facility in the United States, according to Bloomberg. As part of those talks, the company is seeking permission to export equipment needed to modernize its existing NAND flash memory plant in Dalian, China.
Sources familiar with the discussions said Solidigm has argued that improvements to the Dalian facility could help generate funding for its planned U.S. expansion. It remains unclear how U.S. officials view the proposal or whether the requested export approvals will be granted. Any authorization would likely require an exemption from current U.S. export controls that restrict the transfer of advanced semiconductor manufacturing equipment to China.
The discussions come as Washington continues to encourage domestic chip production while tightening restrictions on China’s access to advanced semiconductor technologies for national security reasons. Solidigm’s proposed investment aligns with broader efforts to strengthen the U.S. semiconductor supply chain, but its request to upgrade a Chinese facility highlights the complexities facing global chipmakers operating across both markets.
The Dalian plant manufactures NAND flash memory used in products ranging from consumer electronics to enterprise and data center storage systems. At the same time, major memory producers including Samsung Electronics and SK hynix are expanding capabilities at their China-based facilities to meet growing demand for memory chips used in artificial intelligence infrastructure. Across the industry, manufacturers have increasingly shifted production away from consumer-oriented products and toward higher-margin data center applications, a trend that has contributed to rising memory prices.
According to the report, Solidigm has told U.S. officials that its long-term investment in American manufacturing could eventually total as much as $100 billion. The company is reportedly considering New York as the site for a new manufacturing facility, with construction tentatively targeted for 2027. However, Solidigm has not publicly confirmed either the investment plans or its request for export authorization.
The report also arrives during a period of uncertainty in the memory sector. SK hynix recently shelved plans for a Solidigm initial public offering, citing market conditions among the factors influencing the decision. Meanwhile, Solidigm has warned that memory supply constraints could continue through 2030, highlighting the challenge of increasing production capacity while navigating evolving geopolitical and regulatory pressures.
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