SK Hynix bargains for chip equipment exports to its China facility in return for building a factory in US

The unusual request links two manufacturing sites in opposite directions: equipment would move from the United States to China, while Solidigm considers building a NAND flash factory in America. Reuters reported that U.S. approval is a condition for continuing the U.S. project.

Solidigm reportedly wants to install additional equipment in unused space at SK Hynix’s Dalian factory. The goal is to increase NAND production. NAND chips are used in SSDs and other storage products, including equipment serving AI data centers.

The situation reflects the tension between U.S. export controls and Washington’s push for more chip manufacturing inside America. SK Hynix said it is not expanding capacity at Dalian Mod B, completed in 2023, and that the installation is being conducted with U.S. authorization. Solidigm is reportedly preparing for a 2027 U.S. IPO.

NAND flash memory is a type of semiconductor memory that stores digital information. Unlike temporary working memory, it keeps data when a device is turned off. That makes it useful for storing operating systems, apps, documents, photos, and large datasets.

SSDs use NAND chips to hold data in compact electronic storage. Smartphones and laptops rely on the same basic technology for built-in storage. AI data centers also use SSDs to store models, training data, applications, and other information that their systems must access quickly.

The article presents NAND as a vital component during a wider supply squeeze. Demand from AI data centers has risen sharply, lifting prices for SSDs and high-speed RAM. TrendForce expects NAND prices to rise 15% to 20% in the fourth quarter, showing how demand for data-center capacity can affect everyday storage technology.

TrendForce expects NAND flash prices to rise 15% to 20% in the fourth quarter. That forecast matters because NAND is a basic storage component in SSDs, which appear in laptops, smartphones, and AI data centers.

The key driver is a global component shortage. AI data centers are being built and expanded rapidly, creating strong demand for storage and other semiconductor parts. The article says this demand has pushed up prices for everything entering data centers, including SSDs and high-speed RAM chips.

Higher prices can make storage equipment more expensive for companies building data centers. They can also encourage producers to add manufacturing equipment and seek more output. Solidigm reportedly wants to install equipment at SK Hynix’s Dalian factory to increase NAND production, while considering a new U.S. facility. Whether that eases prices depends on how quickly additional supply becomes available.

SK Hynix is a semiconductor company that operates a NAND-related factory in Dalian, China. The article describes it as a chip giant. Solidigm is SK Hynix’s flash memory unit, focused on NAND products used mainly in solid-state storage drives.

Their connection explains why the proposed equipment move involves both companies. Reuters reported that Solidigm wants to place more chipmaking equipment in spare space at SK Hynix’s Dalian factory. The equipment would support higher NAND production, while Solidigm separately considers building a NAND factory in the United States.

The relationship also places Solidigm inside SK Hynix’s broader regulatory and manufacturing situation. SK Hynix said it is not seeking to expand capacity at Dalian Mod B, completed in 2023. It added that equipment installation is being carried out with consultation and authorization from the U.S. government. Solidigm is reportedly preparing for a 2027 U.S. IPO.

Washington began imposing sweeping limits on advanced chips and chipmaking equipment exports to China in October 2022. The stated reason was national security. The measures targeted technology considered sensitive enough that its movement to China required tighter government control.

The restrictions also affected companies operating Chinese facilities. In September 2025, the Trump administration revoked special export exemptions for certain SK Hynix, Samsung, and Intel plants in China. That change made continued equipment shipments more dependent on specific U.S. permissions.

The United States has since granted Samsung and SK Hynix annual licenses to send chipmaking equipment to their Chinese plants. This creates a difficult balance for SK Hynix and Solidigm. They want to maintain or increase NAND production, yet equipment transfers must comply with U.S. policy. At the same time, Washington is encouraging foreign chipmakers to build and expand manufacturing facilities in America.

Installing more chipmaking equipment could allow Solidigm to produce more NAND at SK Hynix’s Dalian factory. More output would add storage chips to a market facing a global component shortage. That could reduce supply pressure if production grows faster than demand.

The reported plan involves using spare space at the Dalian facility. The added tools would support NAND production, which feeds SSDs used in laptops, smartphones, and AI data centers. The mechanism is direct: more manufacturing capacity can create more available chips for storage products.

Prices may not fall immediately. AI data-center demand is already pushing up costs for SSDs and other components, and TrendForce expects NAND prices to rise 15% to 20% in the fourth quarter. SK Hynix says it is not expanding capacity at Dalian Mod B, so the practical effect of the installation remains tied to its stated scope and U.S. authorization.

Semiconductor manufacturing requires specialized factories because chips are built through many tightly controlled steps. Facilities must support precise processing, clean production conditions, and equipment designed for particular chip technologies. The article’s focus on moving American equipment to Dalian shows how central these tools are to production.

The proposed mechanism is straightforward. Solidigm reportedly wants to install additional chipmaking equipment in unused space at SK Hynix’s Dalian facility. If authorized, those tools could help produce more NAND flash chips, which are used in SSDs across consumer devices and AI data centers.

Access to equipment can therefore influence global supply chains. Export rules may limit where tools can go, while government incentives encourage factories in the United States. Companies must balance production needs, national-security controls, and future demand. The Dalian request and possible U.S. factory show how one equipment decision can connect supply, prices, and manufacturing geography.