SK Hynix’s U.S. sub-subsidiary Solidigm reviews plans to build NAND Flash factory in New York State.
Solidigm, a US sub-subsidiary of SK hynix, is reportedly considering a plan to build a NAND flash manufacturing factory in the United States.
On Sept. 18 (local time), Reuters cited sources and reported, “Separately from the memory semiconductor production plan currently under discussion between SK hynix and Intel, the company is considering a plan to build a NAND flash manufacturing factory for its U.S. sub-subsidiary Solidigm,” and added, “The upstate New York area is emerging as a strong candidate site (for Solidigm’s new factory).”
Solidigm is a U.S. corporation established in 2021 after SK hynix acquired Intel’s NAND and solid-state drive (SSD) business unit. It is a subsidiary of AI Company, an investment subsidiary established by SK hynix in the United States earlier this year.
Reuters previously reported that SK hynix is discussing plans to lease a portion of the Ohio factory currently being built by Intel and to establish a joint venture with Intel and large cloud companies seeking a stable memory supply. In response, SK hynix did not deny the fact that it was under review, stating, “Currently, no matters have been finalized.”
SK hynix also did not deny the report about considering the construction of a Solidigm factory on this day, telling Reuters, “As of now, no specific plans have been finalized.”
If the establishment of Solidigm’s NAND flash factory is finalized, it will become its first local production base. Solidigm currently only has its headquarters and research and development center in the United States, with its factory located in Dalian, China. Reuters analyzed, “If a new factory is built in the United States, Solidigm can lower its dependence on its sole NAND production facility in Dalian, China. At the same time, it can mitigate the impact of U.S. tariffs against China and semiconductor manufacturing equipment export regulations.”
This report on the factory establishment review came at a time when Chinese companies, such as ChangXin Memory Technologies (CXMT), are rapidly expanding their production capacities and narrowing the technology gap with foreign companies. According to Reuters, CXMT is reportedly planning to build a NAND flash memory semiconductor research and development production line at a new factory in Beijing, the capital of China, to enter the NAND flash market. Currently, the NAND flash market is being led by Samsung Electronics and SK hynix of South Korea, and Micron of the United States.
