SK Hynix's Solidigm unit is weighing NAND memory chip factory in US, sources say

Since acquiring Solidigm from Intel for $9 billion in 2020, SK Hynix has grappled with years of losses at the business, following a prolonged downturn in the NAND market. While a US expansion could help SK Hynix narrow the market share gap with Samsung and fend off competition from China, it remains unclear how demand will develop by the time a new plant begins production. Bringing new semiconductor capacity online typically takes years, and concerns about a slowdown in the development of frontier AI models have clouded the outlook for long-term memory chip demand. Last month, SK Hynix said it was considering measures to boost Solidigm's competitiveness after media reports that the unit was exploring a pre-IPO fundraising exercise of about 5 trillion won ($3.6 billion). The company said at the time no decisions had been made. DRAM provides the working memory used by processors, while NAND stores data in phones, computers and data centres. ($1 = 1,382.9900 won) A US plant would reduce Solidigm's reliance on its sole NAND production facility in the Chinese city of Dalian, while helping to shield it from potential US tariffs and curbs on exports of chipmaking equipment to China. The expansion plan comes as Chinese rivals rapidly boost capacity to narrow the technology gap with foreign competitors. Chinese chipmaker CXMT plans to set up an R&D production line for NAND flash memory at a new plant in Beijing, as it seeks to enter the booming market dominated by Samsung, SK Hynix and Micron, Reuters reported on Friday. However, no agreement has been reached regarding Solidigm's US investment and key project details remain under discussion, one of the sources cautioned. SK Hynix may move cautiously as making chips in the US is more expensive than in South Korea, while Washington and Seoul continue talks over trade and investment matters. Shares of SK Hynix ended up 6.4% versus a gain of 2.7% in the benchmark KOSPI index. Asked about US pressure on Korean chipmakers to build factories in America, President Lee Jae Myung said Seoul would seek to "protect South Korea's national interests while respecting the views of companies." "It remains a matter of controversy," he said on Friday, without elaborating. One of the sources said SK Hynix may face less political resistance to producing NAND chips through its US subsidiary because the technology is viewed as less strategically sensitive than advanced DRAM products, such as high-bandwidth memory (HBM) chips. The government has urged SK Hynix and rival Samsung to speed plans for a new semiconductor-making cluster in South Korea's southwest, drawing potential investments in the hundreds of billions of dollars. Potential opposition from Seoul could complicate SK Hynix's ambitions to make advanced memory chips such as HBM or even conventional DRAM chips, at Intel's facilities, Reuters reported this week. US Commerce Secretary Howard Lutnick has threatened tariffs of up to 100% on South Korean and Taiwanese companies unless they commit to expanding production in the US. South Korean chipmakers are being pulled in opposing directions by Washington and Seoul, which are also negotiating adoption of a $350-billion investment commitment South Korea made to the US last year in exchange for lower US tariffs. SEOUL/NEW YORK, Sept. 18 (Reuters) - Chipmaker SK Hynix's subsidiary Solidigm is considering building a NAND flash memory chip factory in the US, with upstate New York emerging as a leading candidate, three people familiar with the matter said. The South Korean chipmaker faces growing pressure from the Trump administration to expand US manufacturing, with Washington pushing to reshore semiconductor production as huge investments in AI data centres dry up global supplies of memory chips. The proposed project would be separate from SK Hynix's discussions with Intel to make memory chips at the US chipmaker's Ohio facility, the sources said, speaking on condition of anonymity as the matter is confidential. SK Hynix said its "subsidiary Solidigm is reviewing various options to strengthen its business competitiveness, but no specific plans have been confirmed at this time." US-based Solidigm said it does not comment on market rumors or speculation. "Solidigm regularly evaluates strategic alternatives to enhance its long-term competitiveness," the company added, echoing SK Hynix's comment. "No decision regarding any specific course of action has been made."

SK Hynix's Solidigm unit is weighing NAND memory chip factory in US, sources say

Solidigm's losses and IPO talk add to uncertainty

Political and competitive pressures shape the plan

Seoul balance and the sensitivity of memory-chip plans

Solidigm weighs US NAND factory, with New York a leading candidate

Related News

UK air traffic control outage caused by software defect, says operator

Corpay to pay $100 million to settle FTC probe over marketing practices; shares fall

Prosperity Bancshares director Ned S. Holmes disposes of common shares worth $36,902.52

Diary-U.S. earnings week ahead

Home Depot opens new Dallas store in 2026 US expansion push