Business · Companies · 2 hrs ago
US Holds Up Equipment Approval for SK Hynix’s China Expansion
The US has not approved SK Hynix’s equipment request for expanding its plant in Dalian, China.
The company wants to use US-made chipmaking equipment to increase production at the Dalian plant.
SK Hynix planned to use income from that expansion to help fund two memory-chip factories in New York state.
Its US subsidiary, Solidigm, is planning to invest more than $45 billion in the New York factories, with the amount potentially rising over time.
The dispute highlights the US challenge of attracting chip investment while restricting technology exports to China for security reasons.
The Commerce Department has not formally rejected the equipment request, but officials have maintained their opposition to equipment for expanding production or upgrading technology in China.
The companies and officials are also discussing equipment needed to maintain the Dalian plant in 2027, and a US-China advisory panel member said White House approval would be needed for a deal to proceed.
The US Commerce Department has not approved SK hynix’s request to export US-made chipmaking equipment for an expansion of its Dalian plant in China.
The company plans to use proceeds from higher production in Dalian to help fund new factories in New York.
Sources said the Dalian expansion approval is a key factor in SK hynix’s New York investment plans.
Its US subsidiary, Solidigm, is pursuing an investment of more than $45 billion to build two NAND memory factories in Massena, New York.
The department has not formally rejected the request to fill empty cleanrooms at the Dalian plant.
- Who
- SK hynix, its US subsidiary Solidigm, and the US Commerce Department.
- What
- The department has not approved SK hynix’s request to export US-made chipmaking equipment for an expansion of its Dalian plant. The decision is affecting the company’s New York investment plans.
- When
- The reports were published on November 4, 2026. Solidigm executives had met with Commerce Department officials nearly 10 times since late August.
- Where
- The plant at issue is in Dalian, China; the proposed new factories would be in Massena, New York.
- Why
- SK hynix says expanding NAND production in China would help it fund its US factory plans and remain competitive. The US is maintaining export controls to prevent advanced US technology from strengthening China’s military.
SK hynix and Solidigm
US Commerce Department
Expansion and equipment
SK hynix and Solidigm
SK hynix sought permission to export US-made equipment to expand production capacity and develop more advanced products at its Dalian plant.
US Commerce Department
The department has maintained its position against allowing additional equipment exports for expanded production capacity or technology upgrades in China.
Purpose and constraints
SK hynix and Solidigm
The company said higher NAND production in China would help fund its US factories and maintain competitiveness.
US Commerce Department
The US is seeking to attract semiconductor investment while restricting technology exports that could strengthen China’s military.
Solidigm executives held nearly 10 meetings with Commerce Department officials to discuss the issue.
Commerce Deputy Secretary Jeffrey Kessler reportedly maintained the department’s position against allowing additional equipment exports for expanded capacity or technology upgrades in China.
Reuters reported that the equipment approval hold was affecting SK hynix’s New York investment plans.
- Requested equipment
- US-made semiconductor manufacturing equipment
- China plant
- Dalian
- New York plan
- Two NAND memory factories in Massena
- Proposed investment
- More than $45 billion
- Potential long-term investment
- About $100 billion
- Equipment approval status
- Not formally rejected for filling empty cleanrooms
3 sources
What people are saying
Ultimately, nothing will proceed without White House approval.