US China export controls threaten SK Hynix's multi-billion-dollar New York chip expansion plan. Published: Nov 04 2026, 03:00 AM IST * FB * TW * Linkdin * Whatsapp * GNFollow Us Stalled U.S. export licenses for SK Hynix's memory chip operations in China are complicating the South Korean firm's plans to build massive new NAND facilities in New York. * SK Hynix's U.S. subsidiary, Solidigm, is planning a massive investment to construct two NAND memory-chip plants in Marcy, New York. * The expansion hinges on U.S. export approvals to upgrade and expand production at the company's Dalian facility in China. * Commerce Department officials, including Under Secretary Jeffrey Kessler, have resisted allowing further American chipmaking tools to be used, creating a high-stakes policy dilemma for the administration over national security safeguards versus foreign investment. South Korean chipmaker SK Hynix (SKHY) is facing a major roadblock in its domestic expansion as its U.S.-headquartered subsidiary, Solidigm's plan to build a memory chip factory in the US has hit regulatory hurdles, Reuters reported. Solidigm has plans to invest upwards of $45 billion to establish two NAND memory-chip facilities in Marcy, New York. Over time, these investments could ultimately swell to roughly $100 billion. NAND memory, which is crucial for data storage in data centers, retains information even when the power is shut off. U.S. officials have held up approval for American chipmaking equipment needed by SK to expand production in China, Reuters reported. The multi-billion-dollar New York project is heavily dependent on cash flow generated from SK Hynix's manufacturing plant in Dalian, China. Company representatives maintain that ramping up production and introducing advanced chipmaking technology in China is essential to remaining competitive and funding the massive U.S. infrastructure layout. SKHY stock gained about 2% on Tuesday. Clash over export controls and national security. Solidigm executives have held nearly 10 meetings with U.S. Department of Commerce officials since late August to negotiate terms. During a session, Commerce Under Secretary Jeffrey Kessler maintained that Washington would not permit additional American semiconductor tools to expand or upgrade capacity in China. Nevertheless, the department has yet to formally reject a license application aimed at outfitting vacant cleanroom space in Dalian with American equipment. Both sides are concurrently discussing a separate 2027 licensing agreement for routine equipment maintenance at the facility. Leland Miller, a member of the bipartisan U.S.-China Economic and Security Review Commission established by Congress, emphasized the gravity of the political choice, stating that the project ultimately cannot proceed without a direct endorsement from the White House. Neither the White House nor the Department of Commerce immediately responded to Reuters' requests for comment. Solidigm noted that as a U.S.-founded entity, it routinely reviews strategic options globally to enhance competitiveness and serve clients, adding that no definitive choice regarding any specific project location has been locked in yet. SKHY stock: retail view. Retail sentiment on Stocktwits was 'extremely bullish' with 'high' message volumes. SKHY stock has gained about 0.8% since its July listing. For updates and corrections, email newsroom[at]stocktwits[dot]com.< Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business. 0 Comments / 0 New

SK Hynix's New York chip plans hit snag over US restrictions on China, sources say. November 4, 2026 | 1:09 pm The SK Hynix both at the OCP Global Summit 2026 in San Jose, California, US where the company unveiled its wide range of next-generation memory solutions last Oct. 12-15, 2026. - SK HYNIX NEWSROOM US officials have held up approval for American chipmaking equipment needed by SK Hynix to expand production in China, complicating the South Korean chipmaker's plans for new memory-chip plants in New York, according to people familiar with the matter. SK Hynix is seeking US export licenses to equip its Dalian plant, arguing that increased production there would help fund its planned US expansion. But the Commerce Department has yet to approve the new licenses, the people said. Its Solidigm unit plans to invest about $45 billion and build two NAND plants in Marcy, New York, two people said, with investment potentially reaching about $100 billion over time. NAND is memory that retains data even when power is turned off and is used for storage in data centers. TRUMP ADMINISTRATION FACES POLICY DILEMMA The negotiations raise questions about how far the Trump administration is willing to bend national security guardrails established to keep US technology from aiding China's military, in order to bring foreign investment and chipmaking onshore. "Ultimately, none of this is going to go forward without a green light from the White House," said Leland Miller, a member of the US-China Economic and Security Review Commission, a bipartisan panel created by the US Congress. The White House did not immediately respond to a request for comment. Negotiations are continuing, the people said, with approval for the Dalian expansion central to SK Hynix's plans in New York. COMMERCE DEPARTMENT MEETINGS INTENSIFY Executives from SK Hynix's US subsidiary, Solidigm, have met nearly 10 times with officials from the Commerce Department since late August, one of the people said. The company needs to ramp up production and develop more sophisticated NAND chipmaking in China to generate revenue to build a US facility and to stay competitive, the people said. In a meeting last week, Commerce Under Secretary Jeffrey Kessler held to his position that the US did not want to allow more American chipmaking tools to China to upgrade or expand capacity, the person said, though the department has not formally denied a license to export American equipment to fill empty clean space in Dalian. The two sides are also negotiating a separate license for 2027 for equipment to keep up the Dalian facility, the person said. At the late August meeting, Solidigm co-CEO Richard Chin and other executives met with Commerce Secretary Howard Lutnick and Kessler, one of the people said. The administration officials appeared excited about the possible investment and NAND facility in the United States and eager to work things out, the person said. Since then, the company has drafted multiple versions of license applications, as the company refines the requests in collaboration with the department, the person said. A spokesperson for the Department of Commerce did not immediately respond to a request for comment. In a statement last week, Solidigm said: "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 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." Rancho Cordova, California-based Solidigm stuck to its statement from last week. SK Hynix did not immediately respond to a request for comment outside business hours. NEW YORK OFFICIALS REMAIN HOPEFUL Company representatives also have met with officials at the US Treasury Department, which would have to waive outbound investment restrictions for SK Hynix to purchase tools for China, the people familiar with the matter said. Treasury's response was that it would wait and see what the Commerce Department does, one of the people said. The Treasury Department did not immediately respond to a request for comment. "Hopefully we'll have an answer in the next couple of weeks," said Anthony Picente, county executive for New York's Oneida County, where the proposed facility would be located, adding that a federal investment tax credit expires at the end of the year. Solidigm explored an initial public offering to help finance production facilities in the US and meet growing memory demand, but halted its review of the IPO options in light of recent market conditions and share price trends, SK Hynix said in an October 23 statement. "Expanding Solidigm's production capacity and strengthening its competitiveness remain important priorities," the statement said. SK Hynix agreed to acquire Intel's NAND factory in Dalian, China, for $9 billion in 2020, and took control of the facility and solid-state drive storage business shortly before the US instituted sweeping export controls on American chipmaking equipment to what it deemed advanced chip factories in China. At first, the US waived the restrictions on foreign-owned chipmaking facilities in China. But last year, the Commerce Department revoked authorizations for foreign chipmakers in China to receive US equipment, deeming them a "Biden-era loophole," and replacing the authorizations with annual licenses that allow suppliers to ship certain equipment and technology to the facilities with quantity limits. In an August 2025 statement, the Commerce Department said it did not intend to issue licenses to upgrade technology or expand capacity at fabs in China. SK Hynix has said that installing equipment to fill empty space in Dalian would not expand capacity because it built the cleanroom in 2023. It is also looking to produce more sophisticated NAND products at Dalian, Reuters reported last month. - Reuters % buffered Powered by GliaStudios