SK hynix New York chip investment faces export hurdle
Plans for a $45 billion investment in New York are stalling as US authorities withhold export licenses for equipment destined for SK hynix’s Chinese operations.
SK hynix’s proposed $45 billion investment in semiconductor plants in Marcy, New York, faces significant delays due to ongoing friction over export controls. US authorities have yet to approve export licenses for chipmaking equipment intended for the South Korean firm’s Dalian plant in China, a facility SK hynix acquired from Intel’s NAND business.
While SK hynix has framed the expansion of its Chinese capacity as essential to funding the New York project, the US Commerce Department remains opposed to technology upgrades within China. Furthermore, the US Treasury Department must review potential waivers regarding outbound investment restrictions before equipment can be shipped to the Dalian facility.
The project, handled by the company’s US-based storage unit Solidigm, could eventually scale to $100 billion. However, Solidigm has clarified that no definitive decision regarding plant locations has been finalized, leaving the future of the New York investment in limbo.