US Commerce Department Blocks SK Hynix Equipment Exports to China

The U.S. Department of Commerce has delayed approval for export licenses for American chipmaking equipment requested by SK Hynix for its plant in Dalian, China. Commerce Under Secretary Jeffrey Kessler stated that the U.S. will not allow American tools to upgrade or expand capacity in China.

This regulatory hold complicates plans by Solidigm, the U.S. subsidiary of SK Hynix, to invest between $45 billion and $100 billion to build two NAND memory-chip plants in Marcy, New York. SK Hynix argues that expanding its Chinese production is necessary to generate the revenue required to fund the New York expansion and maintain global competitiveness.

Solidigm executives have met with Commerce Department officials nearly 10 times since August to resolve the impasse. While the company continues to evaluate strategic alternatives to serve its customers, it stated it is exploring options for building a NAND memory fab at potential locations worldwide and has made no final decision on a specific course of action.