[News] SK hynix Reportedly Seeks U.S. Chip Tool Approval for China Expansion to Fund Potential U.S. NAND Fab

SK hynix is reportedly seeking U.S. approval to expand chip production in China as part of a plan to finance a new semiconductor factory in the U.S. According to Reuters, citing sources, the South Korean memory maker wants Washington to authorize exports of U.S. chipmaking equipment to China as a condition for investing in a US facility.

The plan centers on Solidigm, SK hynix’s U.S. subsidiary, which aims to install additional equipment in unused space at the company’s NAND flash facility in Dalian, China. The expanded operations would help fund a new NAND manufacturing plant in the U.S., Reuters notes. Solidigm is also reportedly considering an initial public offering as early as next year to raise additional capital for the project.

The Dalian site includes a fabrication space known as Mod B, completed in 2023. Equipment installation was left unfinished due to the memory market downturn, leaving the facility partially equipped with room for additional tools, according to Reuters.

SK hynix, however, told Reuters that equipment installation at Dalian’s Mod B facility is proceeding in consultation with and under authorization from the US government. The company said it is not seeking to expand capacity at Mod B. Solidigm declined to comment.

US Export Restrictions Complicate Dalian Expansion Plans

The reported proposal comes as U.S. export restrictions on semiconductor equipment remain tight. In September 2025, the U.S. Commerce Department revoked special authorizations that had allowed SK hynix and Samsung to receive U.S. chipmaking equipment at their Chinese facilities without individual export licenses. The department said it would continue allowing equipment shipments needed to maintain existing operations, but did not intend to approve exports for capacity expansion or technology upgrades.

In December 2025, Washington granted annual approval for U.S. chipmaking equipment shipments to Samsung and SK hynix’s Chinese facilities for 2026, according to Yonhap News. However, Reuters reports that the authorization for SK hynix’s Dalian plant limits equipment quantities, while approval for additional US-made equipment and technology in 2027 has yet to be issued.

The restrictions also complicate technology upgrades at the Dalian facility. According to The Bell, access to advanced etching equipment is particularly important as NAND makers increase the number of stacked layers. Using older tools can require additional processing steps, reducing productivity and raising manufacturing costs. The Dalian NAND facility uses equipment from major U.S. suppliers, including Lam Research, Applied Materials, and KLA, Reuters adds.

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(Photo credit: SK hynix)