What Solidigm wants to build - and why China matters
According to people familiar with the matter, Solidigm Inc. - the U.S. subsidiary of SK Hynix Inc. - has been in discussions with the Commerce Department about a $45 billion plan to construct a new U.S. semiconductor factory. Before committing to what would be the first major new flash memory manufacturing site in the U.S., the company is seeking clearance to ship fresh chipmaking gear to upgrade its existing facility in Dalian, China.
The pitch is straightforward: improvements at Dalian would both accelerate development of a stateside fab and help finance it, the people said. Solidigm intends to roll out technology in China that it says can be migrated to the eventual U.S. facility, but it needs Washington's signoff to ship the tools that would make those upgrades possible and boost production at a site dedicated to Nand flash memory found across devices ranging from smartphones to data centers.
Policy crosscurrents shaping the decision
Washington has spent years trying to rebuild domestic capacity in critical electronics while also tightening the reins on U.S. chip tech headed to China. The U.S. has curbed sales of semiconductors and production tools to China, yet granted carveouts for facilities there run by Samsung, SK Hynix and Taiwan Semiconductor Manufacturing Co.
That balance has shifted. Last year, the Trump administration signaled it wanted to clamp down further by ending an arrangement set under President Joe Biden that let companies send certain tools to China case by case. In August 2025, the Commerce Department's Bureau of Industry and Security revoked validated end-user approvals that had allowed Samsung and SK Hynix to bring specific equipment into China. Jeffrey Kessler, the Under Secretary who oversees BIS, labeled the prior setup a "loophole" and replaced it with one-year permissions that require companies to request approval for a full year's worth of restricted tools at once.
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Where the talks stand and what's next
Talks are ongoing after SK Hynix last week scrapped a potential $10 billion initial public offering of Solidigm following resistance by regulators and shareholders. Solidigm has informed the Commerce Department that increasing sales from Dalian would directly finance a U.S. plant, and the company has indicated the overall U.S. investment might near $100 billion over time, according to the people.
The company has looked at states including New York for the site, and one person said construction could begin next year. Most flash memory output still comes from Asia, though Micron's older Manassas, Virginia, plant also makes those chips, according to the company's website. Commerce Secretary Howard Lutnick has pressed SK Hynix and its competitor, Samsung Electronics Co. Ltd., to ramp up memory manufacturing in the U.S.
What the companies are saying - and the investor angle
A Solidigm spokesperson said the company would not comment on talks with the government but did confirm it is assessing a new facility. "As a US-founded and headquartered company, Solidigm regularly evaluates strategic alternatives to best serve its customers and enhance its long-term competitiveness," the company said. "The company is currently exploring options for building a Nand memory fab at potential locations around the world. No decision regarding any specific course of action has been made." SK Hynix added: "Solidigm is reviewing various options to strengthen its business competitiveness, but no specific plans have been confirmed at this time." Reuters has earlier reported that Solidigm conditioned a U.S. investment on receiving permission to ship additional equipment to China.
Why this matters for your portfolio: the path to a U.S. fab runs through export-control approvals. A green light to upgrade Dalian could unlock near term cash generation and transferable know-how, while a denial could slow timelines or reshape the scale of U.S. production. Watch for signals from BIS and any movement on site selection or construction start dates.
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