SK Hynix's proposed $45 billion New York NAND plan waits on unapproved Dalian export licences

The licence that is still missing

Solidigm, SK Hynix's US subsidiary, plans to invest about $45 billion in two NAND memory plants in Marcy, New York, two people familiar with the discussions said. The figure could reach about $100 billion over time, they said. Solidigm said last week that no decision on a specific course of action has been made.

The delay could push back a plant that would add NAND output on US soil. It also tests how far Washington will bend China controls to bring allied chip investment onshore. Commerce has not formally denied the Dalian application, and the two sides are still negotiating.

NAND memory keeps data when the power is off and is widely used in data centres. Solidigm executives have met Commerce officials nearly 10 times since late August, according to people familiar with the matter. SK Hynix's ADR rose 2.26% to $151.05 as of press time on Tuesday, after gains narrowed from an early 4% to a low of 1.7%.

SK Hynix wants the Dalian tools so the plant can earn more. It says that revenue would help pay for the US build.

The case sets two Trump administration goals against each other. Washington wants foreign chipmakers to build on US soil. It also wants to keep American technology out of Chinese factories. Commerce's caution is about capacity in China.

Why Dalian is meant to pay for New York

SK Hynix argues that filling empty cleanroom space at Dalian would not increase the plant's capacity because it built the cleanroom in 2023. Commerce has said it does not plan to license equipment that would expand or upgrade chip plants in China.

Commerce set out its position on upgrades and expansion in August 2025, according to the people familiar with the matter. Commerce Under Secretary Jeffrey Kessler held to it at a meeting last week, one person said. At a late-August meeting, Solidigm co-CEO Richard Chin and other executives met Commerce Secretary Howard Lutnick and Kessler. Officials seemed keen on a US NAND facility then, one person said. The company has since written several versions of its licence applications with the department.

The Treasury Department would also have to waive outbound investment restrictions before SK Hynix could buy tools for China, according to the people familiar with the matter. Treasury officials have said they would wait to see what Commerce decides.

Leland Miller, a member of the US-China Economic and Security Review Commission, told Reuters the project cannot proceed without a White House decision. "Ultimately, none of this is going to go forward without a green light from the White House," he said.

The calendar and the funding gap

New York officials are watching a federal investment tax credit that expires at the end of 2026. Anthony Picente, county executive for Oneida County, where the plant is proposed, said he hopes for an answer in the next couple of weeks.

Solidigm has also looked at other ways to pay for the project. It explored an initial public offering to fund US production. SK Hynix said on 23 October that it had halted that review because of market conditions and share price trends. Solidigm, based in Rancho Cordova, California, says it is exploring NAND fab options around the world. Approval delays could force SK Hynix to adjust its funding sources, investment scale or project timelines, TradingKey reported. SK Hynix said in the 23 October statement that expanding Solidigm's capacity and strengthening its competitiveness remain priorities.

What happens next

Commerce and Solidigm are separately negotiating a 2027 licence covering equipment to maintain the Dalian plant, routine upkeep rather than new capacity.

SK Hynix and the Commerce Department did not immediately respond to requests for comment.