The proposed Solidigm plants face uncertainty as Washington weighs licences for equipment destined for SK Hynix’s Dalian facility, with a federal tax credit due to expire at year-end.
US export approval delays are complicating SK Hynix’s ambition to pair a major new American investment with continued expansion in China, according to people familiar with the negotiations. The company is seeking permission to import additional US chipmaking equipment for its Dalian facility, but officials have not yet cleared the licences, leaving its proposed New York manufacturing project tied to an unresolved policy fight over China.
The reported plan centres on Solidigm, SK Hynix’s US-based NAND flash subsidiary, which is said to be considering about $45 billion of investment for two plants in Marcy, New York, with the total potentially rising to around $100 billion over time. NAND memory is widely used in data centres and consumer storage because it retains data without power. The proposed US project would add to the company’s manufacturing footprint at a time when memory-chip producers are seeking to secure supply chains, win government support and keep pace with rising demand from artificial intelligence and cloud infrastructure.
But the negotiations have exposed a sharper dilemma in Washington. According to Reuters, Commerce Department officials are reluctant to let American tools flow to China in ways that could upgrade or expand advanced semiconductor production, even as the Trump administration signals support for bringing more chipmaking investment onshore. Leland Miller, a member of the US-China Economic and Security Review Commission, told Reuters that the project cannot move ahead without White House backing. The policy backdrop is a 2025 Commerce Department change that replaced broader authorisations for foreign-owned semiconductor fabs in China with annual licences, while stating that it would not approve exports intended to expand capacity or improve technology.
The talks have intensified in recent months. Reuters reported that Solidigm executives have met Commerce Department officials nearly 10 times since late August, including a session with Commerce Secretary Howard Lutnick and Under Secretary Jeffrey Kessler. In that meeting, Kessler reportedly held to the view that the United States did not want to authorise more equipment for Chinese facilities to expand their capabilities, although the department has not formally rejected the request. A separate licence for equipment needed in 2027 is also being discussed, according to the people familiar with the matter.
Solidigm has said only that it is evaluating strategic options to serve customers and strengthen long-term competitiveness, and that it is looking at possible locations for a NAND factory without making a final decision. SK Hynix has also said it remains focused on expanding Solidigm’s production capacity, while New York officials are still hopeful that a deal can be reached soon. Oneida County executive Anthony Picente told Reuters he expected an answer within weeks, as a federal investment tax credit linked to the project is due to expire at the end of the year. The background to the matter includes SK Hynix’s 2020 purchase of Intel’s Dalian NAND factory and storage business, which later became part of Solidigm after the transaction closed.
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