South Korea’s SK Hynix is seeking U.S. government authorization to export American chipmaking equipment to its Dalian, China, facility as a condition for building a new factory in the United States. Two people familiar with the matter stated on Wednesday, October 14, 2026, that the company’s U.S. unit, Solidigm, intends to install additional equipment in unused space to produce NAND flash memory chips. These chips are used in solid-state drives for artificial intelligence and cloud computing data centers.
The request comes as the Trump administration pressures foreign semiconductor firms, including SK Hynix and Samsung, to establish manufacturing plants within the U.S. to increase domestic production and employment. The U.S. Department of Commerce previously revoked broad exemptions that allowed these companies to ship equipment to China without individual licenses, with one source labeling the prior policy a "Biden-era loophole." In December 2025, the department transitioned to an annual approval system, granting SK Hynix a license for the Dalian site through 2026 that limited the quantity of equipment.
SK Hynix stated that the installation of equipment for the Dalian facility’s "Mod B" section is being conducted in close consultation with and under U.S. government authorization. The company stated that it is not seeking to expand the overall capacity of the Mod B space, which was built in 2023 but left partially unequipped during a market downturn. One source noted that increased production in China would provide the funding and a logistical bridge for Solidigm to finance a new U.S.-based NAND facility.
For workers and regional economies, the scale of this decision involves the potential for a multi-billion dollar investment in a new U.S. fabrication plant. While the exact number of jobs or the specific dollar amount for the proposed U.S. facility was not reported, such projects typically require years of construction and significant capital. If the export licenses are denied, the company may face delays in establishing U.S. manufacturing. Conversely, if approved, it allows SK Hynix to maintain its position as one of the top two global NAND suppliers.
The next steps depend on the U.S. Department of Commerce, which has not yet issued export licenses for 2027. Solidigm is also reportedly weighing an initial public offering (IPO) as early as 2027 to help finance the potential U.S. factory. Meanwhile, the current "validated end user" status for these companies is set to expire on December 31, 2026, requiring new licenses for any shipments of U.S. chipmaking tools to China after that date. On Thursday, October 15, 2026, SK Hynix shares fell 11% following reports of these chip curbs and a broader technology market selloff.