💻Solidigm Seeks US Approval for Equipment Transfer to China
Solidigm's China factory gets a US green light
TL;DR
Solidigm, a subsidiary of SK Hynix, is seeking US approval to install more chipmaking equipment in China to increase NAND chip production. This move could impact global supply and pricing of SSDs.
Solidigm, a subsidiary of SK Hynix, is seeking US approval to install more chipmaking equipment in its factory in Dalian, China, to boost NAND chip production. This decision is crucial for data center operators and cloud providers who rely on SSDs for storage. With global component shortages driving up prices, a 15-20% rise in NAND prices is expected in Q4. Solidigm aims to increase production capacity without expanding its Dalian Mod B facility, which was completed in 2023. The US has granted annual licenses to Samsung and SK Hynix for sending chipmaking equipment to their Chinese plants, indicating a delicate balance between national security and global supply chains.
Key Points
Solidigm plans to install more chipmaking equipment in its Dalian factory in China to boost NAND chip production.
The US imposed sweeping restrictions on advanced chips and chipmaking equipment exports to China in October 2022.
Research firm TrendForce expects NAND prices to rise 15% to 20% in the fourth quarter due to global component shortages.
Solidigm is considering upstate New York as a potential location for a new NAND flash memory chip factory in the US.
Solidigm is preparing for a 2027 US IPO that could raise around $10 billion and value it at up to $100 billion.
Why It Matters
If you're managing a data center or cloud infrastructure, the 15-20% expected rise in NAND prices could impact your budget. Data center operators and cloud providers who rely on SSDs for storage will need to adjust their procurement strategies. The decision to install more equipment in China without expanding the Dalian Mod B facility shows the complexity of balancing national security and global supply chains.
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