SK Hynix may start NAND production in the United States – its subsidiary Solidigm is looking for a factory location

At the end of 2021, the US branch of South Korea’s SK Hynix established Solidigm, which received Intel’s assets related to the production of flash memory and solid-state drives. According to Reuters, the company is currently considering building a NAND wafer manufacturing plant in the United States.

Image source: Solidigm

It is worth mentioning that Solidigm’s production facilities were previously concentrated in Dalian, China, as Intel’s core factory is located there and was sold to the new owner more than six years ago. Solidigm, meanwhile, is headquartered in California and is officially allowed to remain a U.S. company. Solidigm’s shareholder is SK Hynix, which itself is eyeing a factory built by Intel in Ohio to organize memory production in the United States, according to other sources.

At the same time, as highlighted, the move to build a Solidigm factory has nothing to do with similar ideas for Intel’s Ohio factory. Reuters. Furthermore, in this case, New York State is the most likely candidate state for the establishment of such a Solidigm enterprise. Parent company SK Hynix has a very serious obligation to expand memory production in South Korea, but it is also facing pressure from the US authorities, who are prepared to revive the US semiconductor industry with its help, rather than just relying on the strength of local Micron Technology.

For Solidigm, having its own factory in the United States reduces geopolitical risks associated with China. On the other hand, the cost of producing memory in the United States must be higher compared to South Korea and China. A representative of SK Hynix told Reuters that Solidigm is considering various opportunities to enhance its competitiveness but has not yet made any specific decisions.