Rumor has it that Solidigm, a subsidiary of SKHY.US (SKHY.US), is considering building a NAND factory in the US, costs and political resistance still exist

The Zhitong Finance App learned that three people familiar with the matter revealed that SoliDigm, a subsidiary of South Korean memory chip giant SK Hynix (SKHY.US), is considering building a NAND flash memory chip factory in the US, and upstate New York is the main candidate. This move comes at a time when the Trump administration continues to pressure South Korean chip makers to expand manufacturing in the US, and huge investment in AI data centers is straining the global supply of memory chips.

People familiar with the matter said the proposed project was unrelated to negotiations between SK Hynix and Intel, which involved the production of memory chips at Intel's Ohio plant.

SK Hynix said its US subsidiary Solidigm is reviewing various options to enhance business competitiveness, but has yet to confirm specific plans.

Building a factory in the US can reduce dependence on the Dalian factory and avoid tariffs and export restrictions

Establishing a factory in the US would reduce Solidigm's dependence on its sole NAND production facility in Dalian, China, and help it avoid the impact of potential US tariffs and chip equipment export restrictions.

The news of this expansion comes as Chinese rivals are rapidly increasing production capacity to narrow the technological gap with foreign competitors.

However, a source cautioned that no agreement has yet been reached on Solidigm's US investment, and key project details are still being discussed. SK Hynix may be cautious because making chips in the US is more expensive than in South Korea, while Washington and Seoul are still in negotiations on trade and investment matters.

Affected by related news, SK Hynix's stock price closed up 6.4% in the Seoul market, while the benchmark KOSPI index rose 2.7%.

South Korea's attitude is delicate, and NAND political resistance may be less than DRAM

When asked about the US pressuring South Korean chipmakers to build factories in the US, South Korean President Lee Jae-myung said that Seoul will seek to “protect South Korea's national interests while respecting the views of companies.” He said on Friday that “this is still a contentious issue,” but did not elaborate.

According to a source, SK Hynix's production of NAND chips through its US subsidiary may face less political resistance because the technology is not as strategically sensitive as advanced DRAM products such as high-bandwidth memory (HBM).

The South Korean government has urged SK Hynix and rival Samsung to speed up plans to establish a new semiconductor manufacturing cluster in southwestern Korea, with a potential investment of hundreds of billions of dollars. According to reports, possible objections from the Seoul side may complicate SK Hynix's ambition to produce advanced memory chips such as HBM or even traditional DRAM at the Intel factory.

US Secretary of Commerce Howard Lutnick threatened to impose tariffs of up to 100% on South Korean and Taiwanese companies unless they promise to expand production in the US.

South Korean chipmakers are being dragged by both Washington and Seoul, and the two sides are still negotiating the 350 billion US dollar investment promise South Korea made to the US last year in exchange for lower US tariffs.

According to reports, DRAM provides working memory for the processor, while NAND stores data in mobile phones, computers, and data centers.

Solidigm lost money year after year, US stock listing prospects draw attention

Since SK Hynix acquired Solidigm from Intel for $9 billion in 2020, the business has faced many years of losses due to the long-term downturn in the NAND market.

Although expansion in the US may help SK Hynix close the market share gap with Samsung and resist competition from China, it is still unclear how demand will develop when production starts at the new plant. Adding new semiconductor production capacity usually takes several years, and concerns about the slowdown in the development of cutting-edge AI models cast a shadow over the prospects for long-term memory chip demand.

The media reported last month that SK Hynix is planning pre-IPO financing of 5 trillion to 10 trillion won for Solidigm. According to the report, Solidigm has begun recruiting executives responsible for SEC filings and foreign financial disclosure, further strengthening the market's expectations that it will be listed on the NASDAQ. SK Hynix later responded that Solidigm is evaluating various measures to improve competitiveness, but no decision has yet been made.

If Solidigm is successfully listed on the NASDAQ, it will mark SK Hynix's further deepening its US capital layout. The South Korean memory chip giant issued 177.9 million American Depositary Receipts (ADR) at a price of 149 US dollars per share in July this year, raising 26.5 billion US dollars, setting a new record for raising capital for foreign companies to go public in the US.