The US Department of Commerce's decision to withhold an export license for equipment required to expand the Dalian plant is affecting SK hynix's expansion of its China operations and its US investment plans.
According to Reuters, SK hynix applied for an export license for US-made semiconductor manufacturing equipment to expand its Dalian plant in China, but the US Department of Commerce has not approved it at this time. This has raised concerns that the investment plan for a semiconductor plant in New York could also be disrupted.
Solidigm is reportedly proceeding with plans to invest $45 billion in Marcy, New York, to build 2 NAND flash memory plants, according to sources familiar with the matter. The investment could reach $100 billion over the long term. Securing alternative sources of funding has become a key issue.
Whether the Dalian plant expansion will be approved is seen as pivotal, with the plan reportedly calling for revenue generated by the expansion to fund investment in the United States. The issue has been analyzed as a policy dilemma between China's national security regulations and efforts to attract investment in the United States.