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Solidigm Seeks US Nod for China Chip Gear
15 Oct
Summary
- Solidigm seeks US approval to send chip equipment to China.
- US restrictions on chip exports to China have tightened.
- NAND flash chip prices are expected to rise significantly.
SK Hynix's flash memory division, Solidigm, is navigating complex U.S.-China trade relations. The company is seeking U.S. authorization to send American chipmaking equipment to its factory in Dalian, China. This request is tied to Solidigm's ongoing plans to establish a new NAND flash memory chip production facility within the United States, with upstate New York under consideration as a possible site.
This development occurs as the U.S. government has progressively tightened restrictions on advanced chip and equipment exports to China since October 2022, citing national security. Despite these regulations, Solidigm's move suggests a strategic effort to leverage existing facilities while developing new ones. SK Hynix has stated that the equipment installation at its Dalian Mod B facility, completed in 2023, is in consultation with and authorized by the U.S. government, emphasizing no capacity expansion.
NAND flash chips are integral to solid-state drives used in various devices and critical for AI data centers. The escalating demand for these data centers has contributed to a global component shortage, projecting a 15% to 20% increase in NAND prices for the fourth quarter. Furthermore, Solidigm is reportedly preparing for a potential U.S. initial public offering by 2027, aiming to raise approximately $10 billion and achieve a valuation of up to $100 billion.
