SK hynix faces dilemma between Solidigm investment, Chinese plant expansion

SK hynix is facing a growing dilemma over U.S. export controls on advanced semiconductor equipment for its NAND flash plant in China, as Washington's reluctance to approve equipment shipments slows the chipmaker's plans to generate revenue from the Chinese plant to finance new production facilities for its NAND flash unit Solidigm in the United States. Reuters reported on Wednesday that U.S. officials have held up approval for American chipmaking equipment needed by SK hynix to expand production in its NAND plant in Dalian, China. The Dalian plant is a key production hub for Solidigm, manufacturing NAND flash memory and enterprise solid-state drives used in smartphones and data centers. SK hynix is seeking to resume investment in its second Dalian plant to expand NAND production capacity. SK hynix had its Validated End User status expanded by the U.S. Commerce Department in 2023, effectively allowing it to bring American chipmaking equipment into its Chinese plants indefinitely. However, Washington revoked the status at the end of 2025 and replaced it with annual export licenses that al