U.S. delays export licenses for SK Hynix equipment, jeopardizing New York NAND plant plans
The U.S. Commerce Department has not yet approved export licenses for American chipmaking tools that SK Hynix needs to expand its Dalian plant in China. SK Hynix says the Dalian expansion is essential to fund its planned NAND memory fab investment in Marcy, New York. Solidigm, the company’s U.S. subsidiary, has held roughly ten meetings with Commerce officials since late August, while the under secretary reaffirmed that no additional equipment will be allowed. The investment target for the New York plants is $45 billion, with the potential to rise to $100 billion.
Why it matters
The license delay creates uncertainty for the timing and financing of the New York NAND fab, which could affect SK Hynix’s capital allocation and investors’ expectations of future cash flow from the project.
Key facts
- 1The U.S. Commerce Department has not approved export licenses for chipmaking equipment needed by SK Hynix’s Dalian plant. finance.yahoo.com
- 2SK Hynix is seeking the licenses to fund its planned U.S. expansion. finance.yahoo.com
- 3Solidigm plans to invest about $45 billion to build two NAND plants in Marcy, New York, with the investment potentially reaching about $100 billion over time. finance.yahoo.com
- 4Executives from Solidigm have met nearly 10 times with Commerce officials since late August. finance.yahoo.com
- 5Commerce Under Secretary Jeffrey Kessler said the U.S. would not allow additional chipmaking tools for capacity upgrades. finance.yahoo.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.