SK Hynix is negotiating with the US government to secure export licenses for semiconductor equipment to its Dalian NAND flash facility. The company aims to increase production capacity at the site, which supplies components for AI and cloud data centers, by equipping the existing Mod B zone that has remained partially idle since its 2023 completion.
The company is linking these export permissions to its broader US expansion strategy. Solidigm, an SK Hynix subsidiary, is currently evaluating potential sites in upstate New York for a new NAND flash wafer fab. Such projects require multi-billion dollar investments and several years to complete, making the immediate output from the Chinese plant a critical financial bridge.
Market analysts at TechInsights note that NAND flash prices have surged approximately sevenfold since mid-2023 due to high demand from AI infrastructure. To capitalize on this cycle, SK Hynix is balancing its production footprint while navigating US export controls. The company is also considering an IPO for Solidigm as early as next year to fund its US manufacturing ambitions.
SK Hynix maintains that equipment installation at the Dalian site is proceeding in coordination with US authorities and does not involve expanding the facility's original design capacity. Meanwhile, the US Department of Commerce has not provided comments regarding the export license applications, and Solidigm has declined to discuss the matter publicly.
