Solidigm Plans $45 Billion U.S. NAND Factory

According to reports, Solidigm, the U.S. subsidiary of SK hynix, is in discussions with the U.S. Department of Commerce over a proposed $45 billion investment to build a new semiconductor manufacturing facility in the United States. The company also plans to upgrade the technology used at its NAND flash memory plant in Dalian, China, and transfer the advanced manufacturing technology to the proposed U.S. facility.

People familiar with the matter said Solidigm would need approval from the U.S. government to ship new semiconductor manufacturing equipment to its Dalian plant. The equipment would enable the company to upgrade its existing production capabilities and generate additional revenue, which could help finance the new U.S. factory.

Solidigm has reportedly informed the U.S. Department of Commerce that its total investment in the U.S. facility could eventually approach $100 billion. The company has considered potential locations, including New York State, with construction possibly beginning as early as 2027.

The proposed investment comes after Solidigm shelved plans for an initial public offering (IPO) that could have raised as much as $10 billion. The IPO plan reportedly faced strong opposition from regulators and shareholders.

A Solidigm spokesperson confirmed that the company is exploring the possibility of building a new facility. “We are exploring potential locations globally for NAND memory wafer fabrication facilities. No specific course of action has been decided at this time,” the spokesperson said.

Most flash memory chips are currently manufactured in Asia. Micron Technology also operates an older semiconductor manufacturing facility in Manassas, Virginia, that produces certain types of these chips. U.S. Commerce Secretary Howard Lutnick has urged SK hynix and its competitor Samsung Electronics to expand their memory chip manufacturing capacity in the United States, as Washington seeks to strengthen domestic semiconductor production.