Investing.com -- US officials have delayed approval for American chipmaking equipment that SK Hynix needs to expand production in China, creating obstacles for the South Korean company's plans to build new memory-chip plants in New York, Reuters reported Tuesday citing people familiar with the matter.
The company is seeking US export licenses to equip its Dalian plant and has argued that increased production at that facility would help fund its planned US expansion. The Commerce Department has not yet approved the new licenses, the report said.
SK Hynix's New York-listed shares briefly slipped roughly 1% lower following the report.
SK Hynix's Solidigm unit reportedly plans to invest about $45 billion to build two NAND plants in Marcy, New York. The investment could potentially reach about $100 billion over time. NAND is memory that retains data when power is turned off and is used for storage in data centers.
The negotiations raise questions about how the Trump administration will balance national security measures designed to keep US technology from aiding China's military against efforts to bring foreign investment and chipmaking to the United States.
Executives from Solidigm are said to have met nearly 10 times with Commerce Department officials since late August. The company needs to ramp up production and develop more advanced NAND chipmaking in China to generate revenue for building a US facility and to remain competitive.
In a meeting last week, Commerce Under Secretary Jeffrey Kessler maintained his position that the US would not allow more American chipmaking tools to upgrade or expand capacity, one source said. 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 maintain the Dalian facility.
In a statement last week, Solidigm said it regularly evaluates strategic alternatives to serve its customers and enhance its competitiveness. The company said it is exploring options for building a NAND memory fab at potential locations around the world, but no decision regarding any specific course of action has been made.
Original Article
SK Hynix's US expansion plans hit snag over China license delays - report
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