Solidigm plots $45 billion US flash memory plant in exchange for China export rights
Solidigm, the US-based subsidiary of SK hynix, is reportedly in discussions with the US Department of Commerce regarding a massive $45 billion investment in a new flash memory manufacturing plant in the United States. However, the proposal comes with a significant caveat: the company is seeking permission to export equipment to upgrade its existing facility in Dalian, China.
Leveraging US Investment
According to reports from Bloomberg, Solidigm is attempting to use its potential domestic investment as leverage. Unnamed sources suggest the company has proposed that the upgrades to its Chinese plant would enable it to help finance the construction of its new US-based counterpart. This strategy aims to create a financial loop that could offset the high costs of establishing new manufacturing capacity on American soil.
It remains unclear whether the US Department of Commerce will entertain this proposal, given the stringent export restrictions currently in place to prevent the transfer of advanced semiconductor technology to China, citing national security concerns.
Market Volatility and Strategic Shifts
The move comes at a critical time for the memory industry. As AI data centers drive unprecedented demand for high-performance components, manufacturers like Samsung and SK hynix are shifting production focus away from consumer-grade memory toward lucrative data center-grade NAND flash. This shift has contributed to global price volatility, which was cited as a factor in SK hynix's recent decision to cancel the planned IPO of Solidigm.
If the proposal moves forward and the US government grants the necessary export licenses, Solidigm's total investment in US manufacturing could eventually scale up to $100 billion. The company has reportedly penciled in 2027 for the start of construction in New York, aiming to secure a foothold in the domestic supply chain for critical memory components.
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