The South Korean SK Hynix seeks authorization from the United States to send new chip manufacturing equipment to China, in a negotiation that would be tied to the construction of a NAND memory factory on American territory. The relationship between the two projects was revealed by Reuters this Thursday (15), based on information from two people close to the discussions.
According to the reporting, the company intends to use an area of its facility in Dalian, China, that is still partially equipped. The production expansion would help its American subsidiary, Solidigm, finance a new factory in the United States and maintain memory supply while the project was being developed.
SK Hynix, however, disputed part of the information. In response to Reuters, it said that the installation of equipment in the area called Mod B takes place in close consultation with the US government and under its authorization. The company also stated that it is not requesting capacity expansion in that section, completed in 2023. Solidigm did not comment on the negotiation.
The Dalian unit produces NAND memory, used in SSD storage drives intended, among other applications, for artificial intelligence and cloud computing data centers. The facility uses equipment from American manufacturers such as Lam Research, Applied Materials and KLA.
American restrictions complicate negotiation over factory
The main obstacle is Washington's export rules. In 2025, the US Department of Commerce withdrew special authorizations that allowed SK Hynix and other foreign manufacturers to send certain equipment to their Chinese facilities without applying for individual licenses.
The change, effective since December 31, 2025, maintained the possibility of authorizing equipment necessary for the operation of existing factories. The US government, however, stated that it did not intend to grant licenses for capacity expansion or technological upgrading of those facilities.
In December 2025, authorities granted a license for the Dalian unit valid in 2026, with limits on the quantity of equipment. According to a source who spoke with Reuters, Solidigm requested additional authorization for Mod B, while a license for new shipments in 2027 had not yet been issued.
This history makes the distinction between installing equipment in an existing structure and effectively expanding its production capacity especially relevant, a point on which SK Hynix's position differs from the information presented by the report's sources.
The discussion comes as Washington pressures foreign manufacturers to expand their industrial investments in the United States. SK Hynix is also holding talks to use part of an Intel facility in Ohio, according to a previous Reuters report, and is developing an advanced memory packaging unit in Indiana.
Solidigm is also considering a possible initial public offering in 2027, which could help finance an American NAND factory.
So far, there is no public confirmation of an additional license approved for Dalian or of a final decision on the new factory in the United States. The link between the two projects remains based on the confidential sources consulted by Reuters.
