SK Hynix Subsidiary Solidigm Reportedly Eyes US NAND Chip Factory

Solidigm, the U.S.-based subsidiary of South Korean semiconductor giant SK Hynix, is reviewing plans to build a NAND flash memory chip factory in the United States, according to three sources with knowledge of the matter cited by Reuters. The potential project is reportedly considering a location in upstate New York.

In a statement, SK Hynix acknowledged that Solidigm is "reviewing various options to strengthen its business competitiveness, but no specific plans have been confirmed at this time." The sources told Reuters that the proposed facility would be independent of any separate discussions between SK Hynix and Intel regarding memory chip production at Intel's Ohio site.

Strategic and Geopolitical Drivers

A U.S. plant would serve several strategic goals for the company amid a complex geopolitical and market landscape. Key motivations reportedly include:

• Diversifying Production: A new facility would reduce Solidigm's reliance on its sole NAND production base in Dalian, China.
• Mitigating Trade Risks: Establishing a U.S. manufacturing presence could shield the company from potential American tariffs or restrictions on chipmaking equipment exports to China.
• Onshoring Efforts: The move aligns with pressure from Washington to expand semiconductor manufacturing on U.S. soil to bolster domestic supply chains.

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These considerations are amplified by a global shortage of memory chips, a trend accelerated by significant investments in artificial intelligence data centers which require vast amounts of high-performance memory.

Project Remains Under Discussion

While discussions are underway, a final agreement has not been reached, one source told Reuters. Significant details of the project are reportedly still being negotiated.

A key hurdle is the cost of manufacturing, which is substantially higher in the United States compared to South Korea. The final decision may also be influenced by the outcome of ongoing trade and investment negotiations between the U.S. and South Korean governments, according to the report.