SK Hynix Offers to Build New Factory in the US

South Korea's SK Hynix is negotiating with the US government. The company wants to obtain the right to purchase American chipmaking equipment for its plant in China. In exchange, its subsidiary Solidigm would build a new NAND memory plant in the US.

Solidigm wants to bring part of its plant in the Chinese city of Dalian into operation, but this requires equipment from American companies, which needs special permission to be brought into China.

The US restricts the sale of equipment needed for producing advanced chips in China. At the same time, Washington is encouraging foreign companies to open new plants in the country.

Increasing production in Dalian would help Solidigm raise the funds needed for its new project in the US. The company is also considering an IPO next year.

Source: Reuters