Solidigm, the U.S. subsidiary of South Korean memory chip maker SK Hynix, has requested U.S. government approval to export chipmaking equipment to its Dalian, China facility—and conditioned its planned U.S. manufacturing investment on that waiver.
The move exposes a fundamental tension in Washington's semiconductor strategy: the CHIPS and Science Act pushes billions in subsidies toward domestic production, yet the October 2022 export controls restrict shipments of advanced equipment to China. Solidigm is essentially forcing the government to choose.
SK Hynix acquired Intel's NAND flash business in 2020 and rebranded it as Solidigm. The Dalian plant, in northeastern China, is core to its NAND production network. The company argues that equipment upgrades there are necessary to maintain global competitiveness—and that without approval, a major U.S. factory investment makes less sense from a capital allocation standpoint.
The waiver request covers specific U.S.-made gear needed to maintain and upgrade the existing Dalian facility. Solidigm hasn't disclosed details of its proposed U.S. plant—location, investment size, job creation, or timeline—nor has the government set a deadline for its decision.
For policymakers, the calculus is straightforward but uncomfortable. Granting the waiver signals that large manufacturers get concessions in exchange for U.S. commitment. Denying it upholds export discipline but risks deterring semiconductor investment at a moment when the U.S. is competing hard against South Korea and Taiwan for capacity. Either way, other chip makers facing similar tensions will watch closely.
