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Solidigm, SK hynix’s U.S. solid-state-drive subsidiary, has applied for U.S. approval to export additional U.S.-made chipmaking tools to its Dalian, China, NAND facility, according to Reuters on October 14, 2026. Sources told Reuters that increased production in China could help finance a future U.S. NAND factory. The request is not an announced factory-for-permission deal: the export license, the U.S. plant and their timing all remain unresolved.
What Solidigm is asking to ship
The request centers on unused space at Dalian
Reuters reported that Solidigm is seeking an export license for additional semiconductor-manufacturing equipment made in the United States. The tools would be used in unused space at the Dalian NAND operation, specifically the area identified as Mod B.
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SK hynix said installation of equipment for Mod B is being conducted “in close consultation with and under authorization from the US government.” The company also said no capacity expansion is being sought for Dalian Mod B, which it says was completed in 2023. That distinction matters because operating an existing fab and adding output are treated differently under current U.S. export policy.
Reuters identified Lam Research, Applied Materials and KLA among the major U.S. equipment suppliers whose tools are used at the site. Solidigm declined to comment to Reuters.
How the request relates to a U.S. factory
Sources cited by Reuters linked additional Dalian production to a possible U.S. NAND plant. The logic is that output and revenue from the China operation could contribute to funding construction in the United States. Solidigm is also considering an initial public offering as another financing source.
Neither SK hynix nor Solidigm has announced a completed U.S. investment under this arrangement. No confirmed dollar value, site, construction schedule or final investment decision for a U.S. NAND fab was available in the cited reporting.
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Why Washington approval is needed
The VEU pathway was closed in 2025
On August 29, 2025, the Commerce Department’s Bureau of Industry and Security said it had closed the Validated End-User (VEU) loophole. The program had allowed certain foreign-owned semiconductor fabs to export many U.S.-origin items to China without obtaining an individual license for each shipment.
BIS said former VEU participants could apply for licenses to operate existing fabs, but it did not intend to approve licenses for capacity expansion or technology upgrades. Under Secretary Jeffrey Kessler said the policy was intended to close export-control loopholes and address what the administration viewed as a competitive disadvantage for U.S. companies.
Existing-fab work versus expansion
That rule creates the central regulatory question in the Dalian case. SK hynix characterizes the Mod B work as installation in a facility completed in 2023 and says it is not seeking additional capacity. U.S. officials must still determine whether the specific tools and their intended use qualify as permitted operation of an existing fab or amount to expansion or a technology upgrade.
Reuters reported that the Commerce Department had not issued a license for 2027 at the time of its October 14, 2026 report. Until a license is granted, the shipment and any associated production plan remain prospective.
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How the Dalian operation came under SK hynix
Intel announced on December 29, 2021, that it had completed the first closing of the sale of its NAND and SSD business, including the Dalian NAND facility, to SK hynix for $7 billion. The SSD business moved into a newly formed subsidiary called Solidigm. Intel’s announcement said a later closing would transfer remaining assets for an additional $2 billion.
Dalian therefore sits inside a business that originated with Intel but is now operated through SK hynix and Solidigm. The fab produces NAND flash memory used in solid-state drives, including drives serving enterprise and data-center customers.
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Why the decision matters to NAND and SSD buyers
Dalian supplies data-center storage markets
NAND made at Dalian feeds SSD products used in artificial-intelligence and cloud-computing workloads. A decision that permits, limits or delays equipment shipments could affect how quickly that supply is available, although the cited reporting does not quantify a potential change in global output.
Pricing has already tightened
Walt Coon of TechInsights told Reuters that NAND pricing had increased sevenfold since mid-2023. That is a market-source estimate, not an official SK hynix or Solidigm statistic. In that environment, companies have an incentive to secure additional usable fab capacity, while regulators are weighing whether new tools would increase China-based production or merely maintain existing operations.
Key dates and status
| Date | Development |
|---|---|
| December 29, 2021 | Intel announced the first closing of its $7 billion sale of the NAND/SSD business and Dalian facility to SK hynix; Solidigm was created for the SSD business. |
| 2023 | SK hynix says Dalian Mod B was completed. |
| August 29, 2025 | BIS announced that the VEU pathway would no longer allow covered foreign-owned fabs to ship many U.S.-origin items to China without individual licenses. |
| October 14, 2026 | Reuters reported Solidigm’s license application, the possible link to a U.S. NAND fab and the absence of a 2027 license at publication. |
What remains unresolved
- Whether the Commerce Department will approve the requested equipment license.
- Whether regulators will classify the Mod B tools as operation of an existing facility or as capacity expansion or a technology upgrade.
- Whether SK hynix will commit to a U.S. NAND factory, where it would be located and when construction would begin.
- Whether Solidigm will pursue an IPO and how much financing it could provide.
- How any approval or denial would affect NAND and SSD supply for AI and cloud customers.
The immediate issue is therefore a licensing decision, not a completed trade of Chinese production rights for a U.S. factory. The outcome will show how the post-2025 export-control regime treats equipment installed in an existing China-based fab while a company considers expanding its U.S. manufacturing footprint.
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