SK Hynix's Solidigm Considers US NAND Chip Factory, Sources Say

Solidigm, the U.S.-based subsidiary of South Korean chipmaker SK Hynix, is considering building a NAND flash memory chip factory in the United States, according to three people familiar with the matter. The sources, who spoke to Reuters on condition of anonymity, indicated that upstate New York has emerged as a leading candidate for the potential facility.

Potential US Expansion

The proposed project is reportedly separate from any discussions SK Hynix may have with Intel regarding memory chip production at the U.S. chipmaker's Ohio plant, the sources said. A new U.S. factory would mark a significant expansion of domestic semiconductor manufacturing and provide Solidigm with a production base outside of Asia.

In an official statement, SK Hynix acknowledged that its "subsidiary Solidigm is reviewing various options to strengthen its business competitiveness, but no specific plans have been confirmed at this time." Solidigm, which is headquartered in the U.S., did not immediately respond to a request for comment from Reuters.

Strategic and Geopolitical Drivers

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This potential move comes amid a broader push from Washington to reshore critical semiconductor production and strengthen domestic supply chains. A U.S.-based plant would help Solidigm mitigate geopolitical risks, including potential U.S. tariffs and export controls on chipmaking equipment destined for China.

Currently, Solidigm's sole NAND production facility is located in Dalian, China. The consideration for a U.S. factory also aligns with a surge in global demand for memory chips, driven by massive investment in data centers to support artificial intelligence (AI) workloads.

Key Considerations

One source cautioned that no final agreement has been reached, as key details of the project are still under discussion. SK Hynix is expected to proceed cautiously, weighing the strategic benefits against the significantly higher costs of manufacturing chips in the U.S. compared to its facilities in South Korea. The ongoing trade and investment discussions between Washington and Seoul are also likely to be a factor in the final decision.