# SK Hynix weighs US NAND factory to reduce China reliance Upstate New York emerges as potential site for storage chip production shift - **Source:** [AppleInsider News](https://brifing.si/source/4f063a0c-06a9-46c3-84ea-633b4d4b1a4f) - **Published:** 2026-09-18 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/174903c1-63da-4a2e-9f20-d2f40fb3cc08 ## Strategic manufacturing shift SK Hynix's subsidiary Solidigm is evaluating a US-based NAND flash memory factory to decrease reliance on Chinese production. The move aligns with US government pressure on foreign chipmakers to localize manufacturing. Upstate New York has emerged as the leading candidate location, though no final decisions have been made. This comes amid broader industry shifts toward supply chain resilience in critical semiconductor components. ## Project uncertainties remain Key details about the potential factory including exact location, investment size, production capacity and construction timeline remain undetermined. Solidigm stated it's assessing options to enhance long-term competitiveness without committing to specific plans. SK Hynix confirmed it's reviewing alternatives while keeping options open. The project would be distinct from SK Hynix's separate discussions about memory chip production at Intel's Ohio facility. ## Geopolitical context The potential factory reflects growing tensions between the US and China in semiconductor manufacturing. Washington has been actively encouraging foreign chipmakers to establish US production capacity. NAND flash memory is crucial for smartphones, computers and data centers, making it strategically important. This move could help SK Hynix navigate export controls and trade restrictions affecting China-based production. ## Market implications A US-based NAND factory would diversify Solidigm's production base beyond current facilities in China. The company supplies storage chips for various consumer electronics and enterprise applications. While the project wouldn't immediately affect Apple's supply chain, it could create future alternatives for US-sourced components. The move comes as tech companies seek to mitigate risks from concentrated Asian manufacturing. ## Industry trends The semiconductor industry is undergoing significant geographic realignment, with companies establishing production outside traditional hubs. SK Hynix's consideration follows similar moves by TSMC and Samsung to build US fabs. NAND flash memory production has been particularly concentrated in Asia, creating supply chain vulnerabilities. This potential investment reflects broader efforts to rebalance global chip manufacturing geography. ## Corporate structure Solidigm operates as a subsidiary of SK Hynix after the South Korean company acquired Intel's NAND business in 2020. The potential US factory would represent Solidigm's first major manufacturing expansion under SK Hynix ownership. The companies maintain separate discussions about memory chip production at Intel's Ohio site, indicating complex corporate relationships in the semiconductor space. ## Regulatory landscape The CHIPS Act and other US incentives are driving foreign semiconductor investment in American manufacturing. SK Hynix's potential factory would likely qualify for these subsidies while helping meet national security objectives. The move comes as the Biden administration implements export controls limiting China's access to advanced chip technology. Semiconductor companies are adjusting strategies to comply with evolving trade policies. ## Long-term strategic play While immediate plans remain uncertain, SK Hynix's US factory consideration signals long-term positioning in the changing semiconductor landscape. The move could provide supply chain stability amid geopolitical tensions and trade uncertainties. For US policymakers, such investments support domestic technology independence goals. The decision will ultimately depend on cost-benefit analysis of US production versus existing Asian operations. ## Sources covering this story - https://appleinsider.com/articles/26/09/18/a-us-nand-factory-could-reshape-storage-supply-but-not-yet-for-apple?utm_source=rss — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._