BusinessNov 4, 2026, 4:38 AM UTC·2 min read

US Holds Off on SK Hynix Dalian Expansion Equipment Licence

The US Commerce Department has not approved export licences for chipmaking tools SK Hynix needs to expand its Dalian plant, a delay that also clouds its New York investment plans.

Semiconductor fab cleanroom with wafer-processing equipment, illustrating chipmaking tools at a memory factory. — Image: 미래를 보는 창 - 전자신문

SUMO

Dialo

ediviewer

The US government has yet to approve export licences for American chipmaking equipment that SK Hynix needs to expand output at its Dalian plant in China, according to multiple sources cited on November 3 (US time). SK Hynix asked for permission to install additional tools in the empty space at the fab known as Mod B. The Commerce Department has put the request on hold but has not formally rejected it.

Months of talks with Washington

Executives of Solidigm, SK Hynix's US subsidiary, have held close to ten meetings with Commerce officials since late August. At the late-August session, Solidigm co-CEO Richard Chin reportedly met Commerce Secretary Howard Lutnick and Under Secretary Jeffrey Kessler. At a meeting last week, Kessler restated the existing position that additional American chipmaking tools for capacity expansion or facility upgrades cannot be allowed.

The two sides are, however, negotiating separately over licences for equipment needed to run the Dalian plant in 2027.

Link to the New York investment

The sources described the Dalian decision as a key variable for SK Hynix's US plans. Solidigm intends to use earnings from Dalian to fund investment in the United States. The company is pursuing roughly $45 billion to build two NAND flash fabs in Marcy, New York, and the total could reach $100 billion over the long term, the sources said.

Annual licences since the VEU revocation

After Washington revoked the blanket validated end-user (VEU) authorisation in 2025, it moved to annual export licences for Samsung and SK Hynix plants in China. In December 2025 it approved 2026 equipment in limited quantities. An industry official said tools covered by the approved 2026 licence are still being shipped to China and installed normally, separate from the expansion request. The 2027 licence has not been decided, and the application process is proceeding as usual, the official said.