Solidigm's plan for a NAND plant in the United States has emerged. Reports say the company is considering an investment of up to $100 billion and, in talks with the U.S. government, a plan to use approval for shipments to its Dalian plant to fund construction of the U.S. facility.
Solidigm, the U.S. subsidiary of SK hynix, is reportedly in talks with the U.S. government about a proposal to build a new NAND flash semiconductor plant in the United States. The investment could reach as much as $100 billion over the long term, according to reports, and discussions are progressing over securing specific construction funding. New York State and other locations are also reportedly being considered for the site.
Meanwhile, Solidigm is said to be lobbying the U.S. government for permission to bring production equipment into its NAND plant in Dalian, Liaoning Province, China. The explanation reportedly given was that improving the Dalian plant's production efficiency would help secure funding for construction of the U.S. plant. The U.S. government has indicated a policy of allowing existing plants to operate while generally not approving the shipment of new equipment intended to expand or upgrade production capacity.
Bloomberg reported the matter, citing multiple sources familiar with the situation, and Reuters reported on the 15th from a similar perspective. Solidigm declined to comment on the reports but said it was considering NAND memory plants in various parts of the world and that no decisions had been made. SK hynix announced that it had suspended consideration of a pre-IPO and IPO, but said the need to secure new production facilities in the United States remained unchanged and that it would continue considering the timing, scale and funding method.
The impact of U.S. semiconductor export controls remains an uncertain factor. The Department of Commerce has withdrawn VEU status from some plants, and new licenses may be required to export U.S.-made equipment. This could result in changes to plans for bringing equipment into the facility, it has been suggested.