SK hynix's $45 Billion New York Fab Plan Waits on Washington

By Nathan Brooks

Solidigm, SK hynix's U.S. subsidiary, plans to invest about $45 billion in two NAND plants in Marcy, New York, with total investment potentially reaching $100 billion over time — but the plan hinges on export licenses for its Dalian fab in China that the U.S. Commerce Department has yet to grant. The figure comes from people familiar with the matter, as reported by Korea JoongAng Daily.

The Korean chipmaker argues that expanded production at Dalian would generate the revenue needed to fund its American expansion and keep it competitive in NAND, the memory that retains data when power is off and stores information in data centers. Commerce has not approved the new licenses, the people said.

What is actually on the table?

The core bargain is straightforward. SK hynix wants U.S. export licenses to equip its Dalian plant, which it acquired from Intel for $9 billion in 2020. In exchange, Washington gets a two-fab NAND complex in upstate New York and tens of billions in onshore investment.

The sticking point is policy, not paperwork. In an August 2025 statement, the Commerce Department said it did not intend to issue licenses to upgrade technology or expand capacity at fabs in China. SK hynix counters that filling the empty cleanroom at Dalian would not expand capacity, because it built the space in 2023. It also wants to produce more sophisticated NAND products there, Reuters reported last month.

How intense are the negotiations?

Executives from Solidigm have met Commerce Department officials nearly 10 times since late August, one person said. At a meeting that month, Solidigm co-CEO Richard Chin and other executives sat down with Commerce Secretary Howard Lutnick and Under Secretary Jeffrey Kessler. The officials appeared, in the words of one source, excited about the investment and eager to work things out.

The mood has since cooled. At a meeting last week, Kessler held to his position that the United States did not want more American chipmaking tools going to China to upgrade or expand capacity, a person said. Commerce has not formally denied a license, however, and the two sides are also negotiating a separate 2027 license for equipment to keep the Dalian facility running. The company has drafted multiple versions of its license applications in collaboration with the department.

Who else must say yes?

"Ultimately, none of this is going to go forward without a green light from the White House," said Leland Miller, a member of the U.S.-China Economic and Security Review Commission, the bipartisan congressional panel. The White House did not respond to a request for comment.

The Treasury Department also plays a role. It would have to waive outbound investment restrictions for SK hynix to purchase tools for China. Treasury's response, one person said, was to wait and see what Commerce does. The negotiations test how far the Trump administration will bend national security guardrails meant to keep U.S. technology from aiding China's military in order to pull chipmaking onshore.

What about the money and the clock?

Solidigm explored an initial public offering to help finance U.S. production facilities and meet growing memory demand. SK hynix said in an October 23 statement that it halted the IPO review in light of market conditions and share price trends, adding: "Expanding Solidigm's production capacity and strengthening its competitiveness remain important priorities."

Local officials are watching a deadline. "Hopefully we'll have an answer in the next couple of weeks," said Anthony Picente, county executive of Oneida County, where the facility would sit. He noted that a federal investment tax credit expires at the end of the year.

Solidigm, headquartered in Rancho Cordova, California, kept to its statement from last week: "As a U.S.-founded and headquartered company, Solidigm regularly evaluates strategic alternatives to best serve its customers and enhance its long-term competitiveness. The company is currently exploring options for building a NAND memory fab at potential locations around the world. No decision regarding any specific course of action has been made."

For context, SK hynix took control of the Dalian facility and Intel's solid-state drive business shortly before Washington imposed sweeping export controls on American chipmaking equipment to advanced fabs in China. The United States first waived those restrictions for foreign-owned plants, then last year revoked the authorizations — calling them a "Biden-era loophole" — and replaced them with annual licenses carrying quantity limits.

With talks continuing and the tax credit expiring, the next few weeks will show whether Washington treats Dalian as capacity or as leverage.