Why does SK hynix need U.S. export licenses for its Dalian plant, and what is the Commerce Department’s position?

SK hynix is seeking licenses for American chipmaking equipment to expand production in Dalian and to keep the facility operating. Commerce Under Secretary Jeffrey Kessler maintained that the United States would not allow more U.S. tools to upgrade or expand capacity, although the department had not formally denied the license for equipment to fill empty clean space.

How is approval for SK hynix’s Dalian expansion connected to Solidigm’s planned New York NAND plants?

People familiar with the matter said SK hynix argues that increased production at Dalian would help fund its planned U.S. expansion. Solidigm plans two NAND plants in Marcy, and approval for the Dalian expansion is central to those New York plans.

What national security and investment dilemma do the SK hynix negotiations pose for the Trump administration?

The negotiations raise questions about whether the administration will ease restrictions intended to prevent U.S. technology from aiding China’s military in order to attract foreign investment and expand chipmaking in the United States. Leland Miller said the plans would not proceed without White House approval.

SK Hynix's New York chip plans hit snag over US restrictions on China, sources say

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Summary

U.S. officials have not approved export licenses for chipmaking equipment SK hynix needs to expand its Dalian plant in China, complicating the company’s plans for new NAND plants in Marcy, New York. Solidigm plans to invest about $45 billion in two plants, with investment potentially reaching about $100 billion over time. The negotiations put the Trump administration’s China-related national security restrictions in tension with efforts to attract chip investment to the United States. Talks are continuing, and approval for the Dalian expansion is central to SK hynix’s New York plans.

Key Facts

Solidigm executives have met nearly 10 times with Commerce Department officials since late August.
The Commerce Department has not formally denied a license to send equipment to fill empty clean space in Dalian.
The two sides are also negotiating a separate 2027 license for equipment to maintain the Dalian facility.
Leland Miller, a member of the U.S.-China Economic and Security Review Commission, said the plans would need White House approval.

By Reuters

Published Nov 4, 2026 3:55 am KST

SK hynix logo is seen in this illustration taken Jun. 11. Reuters-Yonhap

U.S. officials have held up approval for American chipmaking equipment needed by SK Hynix to expand production in China, complicating the South Korean chipmaker's plans for new memory-chip plants in New York, according to people familiar with the matter.

SK Hynix is seeking U.S. export licenses to equip its Dalian plant, arguing that increased production there would help fund its planned U.S. expansion. But the Commerce Department has yet to approve the new licenses, the people said.

Its Solidigm unit plans to invest about $45 billion and build two NAND plants in Marcy, New York, two people said, with investment potentially reaching about $100 billion over time. NAND is memory that retains data even when power is turned off and is used for storage in data centers.

Trump administration faces policy dilemma

The negotiations raise questions about how far the Trump administration is willing to bend

national security guardrails established to keep U.S. technology from aiding China's military, in order to bring foreign investment and chipmaking onshore.

"Ultimately, none of this is going to go forward without a green light from the White House," said Leland Miller, a member of the U.S.-China Economic and Security Review Commission, a bipartisan panel created by the U.S. Congress. The White House did not immediately respond to a request for comment.

Negotiations are continuing, the people said, with approval for the Dalian expansion central to SK Hynix's plans in New York.

COMMERCE DEPARTMENT MEETINGS INTENSIFY

Executives from SK Hynix's U.S. subsidiary, Solidigm, have met nearly 10 times with officials from the Commerce Department since late August, one of the people said. The company needs to ramp up production and develop more sophisticated NAND chipmaking in China to generate revenue to build a U.S. facility and to stay competitive, the people said.

In a meeting last week, Commerce Under Secretary Jeffrey Kessler held to his position that the U.S. would not allow more American chipmaking tools to upgrade or expand capacity, the person said, though the department has not formally denied a license to export American equipment to fill empty clean space in Dalian. The two sides are also negotiating a separate license for 2027 for equipment to keep up the Dalian facility, the person said.

A spokesperson for the Department of Commerce did not immediately respond to a request for comment.

In a statement last week, Solidigm said: "As a U.S.-founded and headquartered company, Solidigm regularly evaluates strategic alternatives to best serve its customers and enhance its long-term competitiveness. The company is currently exploring options for building a NAND memory fab at potential locations around the world. No decision regarding any specific course of action has been made." Solidigm stuck to its statement from last week. SK Hynix did not immediately respond to a request for comment outside business hours.

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