As South Korea's SK hynix moves to expand production in the United States, the funding source for its U.S. subsidiary Solidigm's New York plant has become unclear, while additional equipment for the Dalian plant and the status of export approvals have become key issues.
South Korea's major memory maker SK hynix is reportedly considering an initial investment of approximately $45 billion and long-term total investment of approximately $100 billion to fund the construction of 2 NAND flash plants planned by its U.S. subsidiary Solidigm in Marcy, New York, but uncertainty has emerged over the source of funds. The Commerce Department's review of export approvals has stalled, and a decision on authorization to export the equipment has not yet been made.
The issue is whether the equipment to be added to the Dalian plant will expand production capacity or merely fill existing space without contributing to increased output. The clean room was completed in 2023, and one side argues that bringing in equipment does not constitute a production increase, while the U.S. side maintains that exports of U.S.-made equipment for technology upgrades and production-capacity expansion in China should not be approved. No agreement has yet been reached between the two sides, and the Commerce Department has not formally rejected the application.
While investment in New York could reach approximately $100 billion at its largest scale, Solidigm is considering potential locations for a NAND plant globally, and no specific plan has been decided. It was also disclosed in October that consideration of a potential Solidigm listing and funding options had been suspended in light of capital-market conditions. The timing, scale and funding methods for the investment will continue to be considered.
The dilemma in U.S. policy has also come to light, as the country seeks to curb the outflow of advanced technology to China while attracting foreign semiconductor investment. Congressional experts have expressed the view that White House approval would be a prerequisite, and local governments are also showing strong interest. Although the application has not been formally rejected, the outcome of the export review and the disclosure of the investment plan will be the next focal points.