SK Hynix wants Washington to approve more chipmaking equipment for China as a condition for building a US factory.
Reuters sources say its US subsidiary Solidigm wants additional tools for NAND production at the company’s Dalian site.
Higher Chinese output would help finance an American NAND fab, making Washington’s manufacturing ambitions dependent on Chinese production.
SK Hynix disputed the expansion claim, telling Reuters that it was installing equipment with US authorisation and consultation.
“No capacity expansion is being sought for the Dalian Mod B, which was completed in 2023,” the company said.
Washington previously removed equipment licensing exemptions for SK Hynix and Samsung, permitting continued Chinese operations while restricting upgrades and expansion.
Dalian’s Mod B contains unused space after the memory downturn interrupted equipment installation, according to people familiar with the facility.
Solidigm is considering a flotation as early as next year, potentially providing another source of funding for American factories.
TechInsights memory analyst Walt Coon said NAND prices had increased sevenfold since mid-2023, with tight supplies expected for several more years.
