New U.S. NAND Plant
SK hynix subsidiary Solidigm evaluates building its first U.S. NAND factory in New York.
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Key Points
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Solidigm was created in late 2021 after SK hynix acquired Intel’s NAND flash business for $9 billion. In the United States, it currently has only its headquarters and an R&D center in San Jose, California.
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Solidigm has begun capital spending on a second fab at its existing Dalian site, with investment starting in the third quarter, even as it evaluates its first U.S. production facility.
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The scale and timing of a potential U.S. investment could depend on long-term supply agreements with customers. One source said Solidigm is pursuing local production to meet NAND demand from U.S. Big Tech companies’ AI servers.
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Demand and pricing have strengthened sharply: SK hynix said DRAM and NAND flash prices rose significantly for a second consecutive quarter, while TrendForce estimated SK hynix’s NAND revenue, including Solidigm, reached $14.27 billion in the second quarter, up 89.5% from the previous quarter.
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Solidigm is reportedly seeking to raise as much as 10 trillion won, or about $7 billion, in a pre-IPO share sale that could precede a Nasdaq listing; Morgan Stanley and Goldman Sachs have been tapped to arrange the offering.
Solidigm, SK Hynix's U.S.-based NAND flash subsidiary, is weighing plans to build its first manufacturing plant in upstate New York or elsewhere in the eastern United States, AppleInsider reports. The move would help the company reduce dependence on its sole factory in Dalian, China, and position it to capture booming NAND demand from AI data centers and major U.S. tech companies. Site selection, investment timing, and customer agreements remain under discussion, though higher U.S. manufacturing costs and trade policy uncertainty could complicate the project.
Solidigm's Path From Intel Acquisition to U.S. Expansion
Solidigm was created in late 2021 when SK Hynix paid $9 billion to acquire Intel's NAND flash business. Today, the company operates only a headquarters and R&D center in San Jose, California, making it entirely dependent on Chinese production. The Economic Times notes that a U.S. factory would be Solidigm's first domestic manufacturing footprint, a major strategic shift.
NAND Prices Surge as AI Data Centers Drive Demand
Demand for NAND flash memory has surged sharply. SK Hynix reported that DRAM and NAND prices rose significantly for a second straight quarter. AppleInsider reported that Solidigm's NAND revenue hit $14.27 billion in the second quarter—a jump of 89.5% from the previous quarter. AI servers and cloud infrastructure are the primary drivers pushing U.S. tech giants to seek reliable local suppliers.
Tariffs and Trade Risk Drive U.S. Manufacturing Appeal
A U.S. plant would shield Solidigm from China-related tariffs and export restrictions, two growing headwinds for chipmakers. The company is already investing in a second fab at its Dalian site, with spending beginning in the third quarter. But building in America offers strategic insulation—and could lock in long-term supply deals with U.S. Big Tech companies hungry for reliable NAND sources.
Solidigm Seeks $7 Billion Funding for IPO and Expansion
To fund growth, Solidigm is pursuing a pre-IPO share sale of up to 10 trillion won—roughly $7 billion. Morgan Stanley and Goldman Sachs are arranging the offering, which could precede a Nasdaq listing. SK Hynix said Solidigm is reviewing options to strengthen competitiveness, though it has not confirmed specific investment details or timing.
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