SK Hynix Faces China License Delay That Complicates $45 Billion U.S. Expansion

U.S. officials have reportedly delayed export licenses SK Hynix needs to upgrade its NAND flash memory plant in Dalian, China. The delay complicates the company’s plans to invest $45 billion in two new chip plants in Marcy, New York. Revenue from the upgraded Dalian facility is intended to help fund the investment.

The issue highlights the U.S. administration’s challenge of attracting chip manufacturing while addressing national security concerns related to China. Executives from SK Hynix’s U.S. subsidiary, Solidigm, have held numerous meetings with the Commerce Department to resolve the issue. They argue the Dalian upgrades are crucial to the company’s competitiveness and to funding the New York project.