“U.S. Blocks U.S.-Made Equipment from Entering SK hynix’s China Plant”

[Financial News]  

The U.S. government has held up an export license for U.S.-made semiconductor equipment needed to expand SK hynix’s plant in China, Reuters reported on the 3rd (local time). As a result, SK hynix’s plans to invest in a semiconductor plant in New York State are also reportedly facing setbacks.
According to sources, SK hynix requested export licenses for U.S.-made semiconductor manufacturing equipment to expand facilities at its Dalian plant in China, but the U.S. Commerce Department has yet to approve them.
Executives at Solidigm, SK hynix’s U.S. grandchild subsidiary, have continued negotiations, including holding talks with the Commerce Department nearly 10 times since late August, but have not obtained an export license.
At last week’s meeting as well, Commerce Under Secretary Jeffrey Kessler reportedly maintained that he could not allow additional U.S.-made semiconductor equipment to be brought in to expand production capacity or improve facilities at the Chinese plant.
However, export licenses for equipment needed to operate the Dalian plant at its current scale in 2027 are reportedly being negotiated separately.
According to sources, the decision to bar expansion of the Dalian plant is expected to set back SK hynix’s New York investment plans as well. That is because SK hynix plans to invest in the U.S. using profits from increased production at the Dalian plant.
Solidigm currently plans to build two NAND flash plants in Marcy, New York State, at a cost of $45 billion. Some projections put its long-term investment at as much as $100 billion.

[email protected] Song Gyeong-jae Reporter