SK Hynix is requesting U.S. government export approval to import additional American-made semiconductor manufacturing equipment to its factory in China, according to a report by Reuters on October 15, citing sources.
According to the report, SK Hynix's U.S. subsidiary Solidigm is planning to install more equipment in unused space at its Dalian plant to increase NAND flash production. To facilitate this, the company has applied for export approval from the U.S. government to bring in additional equipment.
Sources told Reuters that SK Hynix is linking its equipment import plans for the Chinese factory to the construction of a new facility in the United States.
In 2023, SK Hynix established a production area known as 'Module B' at the Dalian plant, but was unable to complete the installation of equipment due to a downturn in the memory market. Currently, only some equipment is installed in this space, and there is still room for additional equipment, sources noted.
The Dalian plant currently uses equipment from major U.S. semiconductor equipment manufacturers, including Lam Research, Applied Materials, and KLA. The U.S. has imposed restrictions on the export of domestic semiconductor manufacturing equipment to China to slow its advanced semiconductor development, making U.S. government export approval necessary for additional equipment imports.
Last year, the U.S. Department of Commerce revoked an exception that allowed SK Hynix and Samsung Electronics to import U.S. equipment to their Chinese factories without individual export approvals. Since then, the department has stated it will permit the export of equipment necessary for the operation of existing plants but will not approve equipment for capacity expansion or technology improvement. Additional equipment import approvals for 2027 have not yet been issued.
In a statement to Reuters, SK Hynix said, “The installation of equipment in Module B is being carried out in close consultation with the U.S. government and with its approval.” The company added, “We are not pursuing an expansion of production capacity at the Dalian Module B completed in 2023.”
Recently, the Trump administration has pressured foreign semiconductor companies, including SK Hynix, to build factories in the U.S. to revive domestic manufacturing and create jobs. Reuters reported last month that Solidigm is considering plans to build its first NAND flash factory in the U.S., with northern New York being a strong candidate location.
Building semiconductor manufacturing plants is a large-scale investment project that takes years and requires billions of dollars. One source indicated that expanding production in China could help Solidigm secure funding for its U.S. factory construction. Another source mentioned that Solidigm is also considering an initial public offering (IPO) as early as next year, with funds raised potentially used for the U.S. factory construction.
As the NAND market experiences a boom due to a shortage of memory semiconductors, Walt Kun of TechInsights noted that NAND prices have surged sevenfold since mid-2023, and a supply shortage is expected to continue for several years.
* This article has been translated by AI.
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