SEOUL, October 28 (AJP) - Solidigm, the California-based subsidiary of South Korean chipmaker SK hynix is "in talks" with the U.S. Department of Commerce over a plan to invest US$45 billion in a new chip plant, Bloomberg News reported on Wednesday.
The proposed plant could significantly expand Solidigm's manufacturing operations in the U.S. as demand for data storage continues to grow amid the artificial intelligence (AI)-driven boom.
The project's total investment could eventually reach $100 billion if expanded, while New York has emerged as a potential site for the plant, with construction possibly beginning as early as next year, according to the American news outlet.
Before moving forward with the project, Solidigm wants U.S. government approval to bring American-made equipment into its NAND flash memory plant in Dalian, China, to upgrade production. The company has reportedly told U.S. officials that increased revenue from the Chinese facility could help fund construction of the new U.S. plant.
The request comes amid U.S. restrictions on exports to China, as Washington seeks to limit Beijing's access to advanced and sensitive technologies by requiring companies to obtain approval for certain equipment shipments to existing facilities in the country.
But Solidigm said it is still reviewing the feasibility of building a new plant at several locations around the world, but no decision has been made.
The latest development comes after SK hynix recently scrapped plans for a potential initial public offering (IPO) of its US subsidiary, which had been considered as a way to raise funds for expansion. SK hynix has stressed, however, that the decision does not change the need to expand Solidigm's production capacity to meet growing demand for memory chips used in AI data centers.
Solidigm was established in 2021 after SK hynix acquired Intel's NAND flash memory and solid-state drive (SSD) business. It specializes in high-capacity storage products for data centers, where demand is growing as companies build infrastructure to support AI services.
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