SK Hynix is reportedly seeking approval from the U.S. government to expand operations at its China manufacturing facility. According to a Reuters report citing sources familiar with the matter, the South Korean memory chipmaker is requesting permission to export additional U.S.-origin semiconductor production equipment to its plant in Dalian, China. The report said SK Hynix has tied the approval to its planned investment in U.S. manufacturing operations.
The report states that SK Hynix’s U.S. subsidiary, Solidigm, is seeking an export license to install equipment for NAND flash memory production in unused space at the Chinese facility. The company is reportedly linking its plans for a new NAND manufacturing plant in the U.S. to its ability to expand production capacity in China.
The move comes as the Trump administration seeks to encourage foreign semiconductor manufacturers to increase investment in U.S.-based production, while maintaining restrictions on China’s access to advanced semiconductor manufacturing technologies.
SK Hynix’s Dalian facility already operates semiconductor manufacturing equipment supplied by U.S.
companies, including Lam Research, Applied Materials and KLA. However, its U.S. subsidiary, Solidigm, requires additional authorization to acquire and install further U.S.-made equipment at the site. According to the report, SK Hynix believes expanding production in China would help Solidigm finance a planned NAND manufacturing facility in the U.S. and support further growth in its American production capacity.
In a statement to Reuters, SK Hynix said the installation of equipment for Mod B was being carried out in close coordination with, and under authorization from, the U.S. government.
The U.S. government has imposed export controls on semiconductor manufacturing equipment to limit China’s development of advanced chips for AI and military applications. Last year, the U.S. Department of Commerce revoked authorizations that had allowed SK Hynix and Samsung to procure U.S.-made equipment for their Chinese facilities without individual export licenses, describing the previous arrangements as a Biden-era loophole. The department subsequently indicated that licenses would be issued to support existing operations but that applications for capacity expansion or technology upgrades were unlikely to receive approval.
In December 2025, the department granted SK Hynix a license covering its Dalian facility for 2026, while limiting the volume of equipment that could be exported. According to one source, the company has yet to secure approval to import additional U.S.-made equipment and technology for 2027.
The proposed U.S. NAND manufacturing facility forms part of SK Hynix’s broader strategy to expand its domestic production footprint. Reuters reported last month that the company’s U.S. subsidiary, Solidigm, is evaluating plans for a NAND flash memory plant in the United States. Solidigm is also reportedly in discussions with Intel regarding the lease of a portion of its planned semiconductor manufacturing facility in Ohio.
According to another source cited in the report, Solidigm is also considering an initial public offering (IPO) as early as next year, a move that could provide additional capital for its U.S. manufacturing expansion plans.
SK Hynix’s request comes as the NAND market recovers from a previous downturn amid tightening supply conditions. Walt Coon, a memory industry expert at TechInsights, said NAND prices have increased sevenfold since mid-2023 and expects supply conditions to remain tight over the next few years.
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