Solidigm — the NAND flash subsidiary of SK hynix — is in talks with the US Commerce Department to invest roughly $45 billion in a new American flash-memory fab, which would become the first new major NAND production facility ever built on US soil. Bloomberg reported the negotiations on October 27, 2026, citing sources familiar with the matter, with potential sites under consideration including New York State and other locations, and construction possibly starting as early as 2027.
The move would mark a historic first: the United States currently has no active commercial-scale NAND production. Micron, the last American NAND maker, shifted its flash output to Singapore and Japan years ago — and its ongoing ~$200 billion US expansion is focused entirely on DRAM.
The Deal on the Table
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Investment scale: approximately $45 billion for the initial US NAND fab, with SK hynix signaling that total US investment could approach $100 billion over the long term.
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The quid pro quo: in exchange, Washington would approve shipments of US semiconductor tools — from Lam Research, Applied Materials, and KLA — to equip Solidigm's Dalian, China fab, whose "Mod B" cleanroom was completed in 2023 but has sat idle. Dalian's expanded output would help fund the US plant.
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Status: negotiations are ongoing and no final decision has been made; the US currently licenses tool exports to Dalian on an annual basis (the VEU exemption was revoked in August 2025), and the 2026 license does not cover 2027.
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Financing context: SK hynix discontinued its review of a Solidigm IPO on October 23, 2026, citing market conditions — but the funding need for the US fab remains, with alternative financing under evaluation.
Why the US Wants — and Needs — a NAND Fab
The negotiation sits at the intersection of two converging pressures:
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AI data-center demand for NAND is exploding. High-capacity QLC enterprise SSDs are becoming the cold-storage tier of AI infrastructure, and SK hynix's own ADR filing projected NAND average selling prices to rise more than 250% year-on-year in the second half of 2026 amid a global memory shortage.
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Solidigm dominates the niche that matters. The company — formed from Intel's NAND business, acquired by SK hynix for a total of $9 billion — held over 60% of the high-capacity QLC enterprise SSD market in the first half of 2026, according to Goldman Sachs data, with nearly all output going to AI and hyperscale data-center customers.
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National-security leverage runs both ways. The US gains a domestic NAND supply chain it hasn't had in decades; SK hynix gains certainty for its Dalian equipment shipments, which the export-control regime has made increasingly fragile.
Context: SK hynix's Existing US Footprint
The Solidigm talks extend an American build-out already underway. SK hynix broke ground in August 2026 on an advanced HBM packaging facility in West Lafayette, Indiana — a $3.87 billion investment backed by up to $450 million in CHIPS Act incentives — where Korean-made wafers will be packaged and tested to produce "Made in USA" HBM from late 2029. CEO Kwak Noh-jung has said the group's total US investment and assets will exceed $45 billion by 2030, spanning the Indiana campus, a $10 billion "AI Company" initiative launched in January 2026, and Solidigm.
What a New US NAND Fab Means for Industrial Automation Suppliers
A $45 billion fab is one of the largest single automation procurement programs the industry will see this decade — and the secondary effects reach far beyond wafer tools:
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Fab construction is an automation project before it is a chip project. Thousands of control-system components — processors, I/O, drives, power supplies — are consumed during cleanroom fit-out and tool installation. Siemens SITOP power supplies such as the 6EP1332-2BA20 and 6EP1322-1SH03 are workhorse 24V DC power units across semiconductor facility infrastructure.
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Facility control systems run on industrial PCs and controllers. Modules like the Siemens 6ES7648-3AK10-0PA0 industrial PC and 6FC5210-0DF03-0AA0 PLC CPU illustrate the compute layer that facilities teams keep stocked for building-automation and tool-interface systems.
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NAND supply relief would echo through automation supply chains. Enterprise SSDs store the process data and AI workloads behind modern manufacturing; a memory shortage raises computing costs for every factory. The cycle documented in passive-component lead times stretching to 52 weeks shows how quickly component scarcity cascades downstream.
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Location decisions trigger multi-year equipment ramps. If New York wins the fab, it joins Micron's Clay megafab and the state's growing semiconductor corridor — concentrating demand for automation parts and skilled integrators in one region.
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Key Takeaways
- Solidigm is negotiating a ~$45 billion US NAND fab with the Commerce Department — potentially the first new major flash-memory facility ever built on American soil, with construction possible from 2027.
- The deal would trade US fab investment for approval of American chipmaking tools (Lam, Applied Materials, KLA) shipping to Solidigm's idle Dalian "Mod B" cleanroom in China.
- American soil currently has zero commercial NAND production; Micron's $200 billion US program is DRAM-only.
- AI-driven QLC enterprise SSD demand (NAND prices projected +250% YoY in H2 2026) and Solidigm's 60%+ share of the high-capacity QLC eSSD market underpin the economics.
- The talks extend SK hynix's US build-out: the $3.87 billion Indiana HBM packaging plant broke ground in August 2026, targeting "Made in USA" HBM from late 2029.
Frequently Asked Questions
Is Solidigm building the first US flash-memory factory?
Yes — if the talks succeed. Bloomberg reported on October 27, 2026 that Solidigm is negotiating with the US Commerce Department on a roughly $45 billion NAND fab that "would be the first new major flash-memory chip production facility on American soil." The US currently has no active commercial NAND production; Micron moved its NAND output to Singapore and Japan years ago, and its US expansion is focused on DRAM.
What does Solidigm's US NAND fab have to do with its China fab in Dalian?
The two are linked. As part of the negotiation, Washington would approve shipments of US-made semiconductor tools from Lam Research, Applied Materials, and KLA to equip Dalian's Mod B cleanroom — completed in 2023 but idle pending export licenses. Since the US revoked the VEU exemption in August 2025, tool exports to Dalian require annual licenses, and the 2026 license does not cover 2027. Revenue from expanded Dalian output would help fund the American plant.
How does this relate to SK hynix's Indiana facility?
They are complementary parts of one US strategy. The West Lafayette, Indiana plant is an advanced packaging facility for HBM (high-bandwidth memory) — Korean-made DRAM wafers will be packaged and tested there from late 2029, backed by up to $450 million in CHIPS Act incentives. The Solidigm project would add domestic NAND wafer production, giving the SK hynix group both major memory types on US soil. SK hynix's CEO has projected total US group investment exceeding $45 billion by 2030.
Sources: Bloomberg via TipRanks · SK hynix Newsroom · US Dept. of Commerce · SK hynix (Solidigm IPO) · RPRNA · Aju Press