[News] SK hynix Solidigm Reportedly Eyes US$100B for 2 U.S. NAND Fabs, Kioxia Bonds Seen as Potential Funding Option
SK hynix’s U.S. NAND manufacturing plans are drawing renewed attention as more details emerge about its potential expansion. According to Seoul Economic Daily, its NAND flash subsidiary Solidigm is reportedly planning to build NAND facilities at Marcy Nanocenter in Oneida County, New York. The project would mark Solidigm’s first NAND fab in the U.S., as the company seeks to capitalize on growing demand for advanced NAND driven by the AI data center boom.
Under the proposed expansion, Solidigm would build two NAND fabs in phases, starting with a facility capable of producing 100,000 12-inch wafers per month, Seoul Economic Daily reports. With each fab estimated to cost US$40 billion to US$50 billion, total investment could reach US$100 billion (approximately KRW 133 trillion). New York State is also reportedly considering up to US$50 million in funding for site preparation.
Marcy Nanocenter is approximately an hour’s drive from Clay, New York, where Micron is developing a DRAM manufacturing hub. This proximity could help Solidigm strengthen its supply chain and secure skilled workers, Seoul Economic Daily notes.
Still, SK hynix stressed that no final decision has been made, stating that Solidigm’s U.S. fab plans remain under consideration, the report adds.
SK hynix Explores Funding Options for Solidigm’s U.S. Fabs
Financing remains a key consideration for Solidigm’s proposed U.S. expansion, particularly following the withdrawal of its IPO plans. According to Dealsite, SK hynix suspended its review of Solidigm’s pre-IPO fundraising and IPO plans on October 23, removing a potential source of external capital for the new facilities. Although SK hynix held KRW 114.46 trillion in cash-like assets as of the third quarter, it must also fund manufacturing investments in South Korea and overseas, making alternative financing options worth considering.
Against this backdrop, Reuters notes that SK hynix is reportedly seeking U.S. export licenses to expand NAND production at its Dalian plant in China, aiming to generate revenue to help finance Solidigm’s proposed U.S. fabs. Solidigm executives have met with U.S. Commerce Department officials nearly 10 times since late August, including talks with Commerce Secretary Howard Lutnick. However, the requested licenses remain unapproved, as U.S. officials remain reluctant to allow equipment exports that would expand chipmaking capacity in China.
Another potential funding option involves SK hynix’s remaining Kioxia-linked convertible bonds (CBs). According to Dealsite, the investment, held through special purpose company SPC2, is estimated to be worth approximately KRW 23 trillion and could help finance the U.S. expansion. However, Kioxia’s share price has fallen around 64% from its June peak, while selling the investment could mean giving up potential influence over Kioxia’s management. SK hynix may therefore need to weigh its funding needs against longer-term strategic interests.
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(Photo credit: Solidigm)
