SK Hynix is evaluating a potential U.S. fabrication plant for its subsidiary Solidigm to diversify storage and memory manufacturing geography.

According to the Seoul Economic Daily, SK Hynix subsidiary Solidigm is considering building a U.S.-based NAND fabrication plant. This development coincides with SK Hynix’s recent clarification regarding its U.S. artificial intelligence joint venture, which is now operating under the name SK Hynix Ventures.

Solidigm currently manufactures NAND chips at a former Intel facility in Dalian, China, now operated by SK Hynix. The division utilizes floating-gate technology rather than charge-trap architecture and produces fewer 3D NAND layers—192 compared to SK Hynix’s 321 and 375 layers, as well as those of other manufacturers. U.S. export restrictions on technology to China currently block upgrades to the latest NAND processes. In August, reports indicated SK Hynix was expanding Dalian’s output by constructing a second fab there, but limiting the technology to the 100-layer class while reserving advanced 375-layer NAND for its Cheongju plant in South Korea. Additionally, industry speculation this month suggests Solidigm may pursue a U.S. initial public offering, which would inject capital if approved.

Solidigm already maintains U.S. sales, marketing, and research and development facilities in Rancho Cordova, California. Korean industry sources indicate the company is now evaluating potential locations and negotiating terms for an East Coast fabrication plant, potentially in upstate New York, according to Reuters. An SK Hynix spokesperson stated, “Solidigm is reviewing various options to strengthen its competitiveness, but nothing has been finalized.”

The proposed expansion aligns with the Trump administration’s push to increase domestic memory chip manufacturing. SK Hynix is investing approximately $4 billion (₩5.35 trillion) to construct a high bandwidth memory (HBM) packaging facility in West Lafayette, Indiana. Chairman Chey Tae-won has noted that U.S. customers expect SK Hynix to maintain fabrication operations domestically. Furthermore, Reuters and other outlets have reported that SK Hynix could potentially contract some DRAM production to Intel’s U.S. plants. Driven by substantial profits from HBM and DRAM chips, SK Hynix remains committed to expanding fab capacity across HBM, DRAM, and NAND to meet sustained demand from the AI processing boom. Industry analysts note a persistent, worldwide shortage of all three chip types, with Chey projecting the imbalance will persist until 2030, when supply and demand may finally stabilize.

Establishing a U.S. facility for Solidigm would grant access to cutting-edge NAND technology currently restricted from its Dalian operations. However, semiconductor manufacturing in the United States carries higher costs than facilities in South Korea or China. Strategically, a U.S. plant would strengthen relations with Washington and, by operating at an arm’s length from SK Hynix directly, could alleviate South Korean government concerns about eroding domestic industrial capacity. This arrangement is further supported by the fact that NAND is less critical to AI workloads than HBM and DRAM. As noted earlier, a potential U.S. listing for Solidigm could also help finance the project.

Separately, SK Hynix has officially launched its corporate venture capital arm, SK Hynix Ventures, designed to deepen strategic partnerships within the global AI ecosystem and secure next-generation technologies. The company recently hosted its inaugural “SK Hynix Ventures Day” in Silicon Valley, convening venture capitalists and startup representatives. The initiative will focus on AI computing, data center infrastructure, system software, and optical interconnect technologies. This follows Solidigm’s entry into the AI computer vision market in March. The forthcoming U.S. operation, previously referred to as AI Co, will serve as the holding entity for Solidigm’s U.S. business. Building upon SK Hynix’s existing corporate investment framework, CEO Kwak Noh-jung emphasized the strategic shift: “Competitiveness in the AI era stems not just from rapidly securing innovative technologies, but from ecosystem capabilities where customers, partners, and startups create new value together. Through SK Hynix Ventures, we will support the growth of promising companies and grow into a global partner that jointly designs the future of AI infrastructure based on strategic investments and technological cooperation.”