Solidigm, a subsidiary of SK hynix, is considering building a NAND flash production plant in the US.
According to industry sources on Sept. 18, Solidigm is reviewing potential sites and detailed requirements for a NAND mass-production line in the eastern US. It would be the company's first NAND mass-production base in the US. Solidigm currently operates a manufacturing facility in Dalian, China, while its US operations include its headquarters and research and development (R&D) facilities. Solidigm is headquartered in Rancho Cordova, California.
The planned new Solidigm plant is seen as a response to NAND supply shortages following demand from artificial intelligence (AI) infrastructure, alongside tight supplies of DRAM. NAND demand for servers at AI data centers in the US has been particularly strong.
According to market researcher Counterpoint Research, global NAND revenue rose 70% in the second quarter from the previous quarter, while NAND prices increased 55% over the same period. The market recorded strong growth for a second consecutive quarter. Another market researcher, TrendForce, estimates SK hynix's NAND revenue in the second quarter was close to 20 trillion won.
SK Group is expanding its investment in the US. In July, it listed American depositary receipts (ADRs) on the Nasdaq market in the US. In August, it also held a groundbreaking ceremony for its West Lafayette, Indiana, plant, the first advanced semiconductor packaging facility of its kind in the US.
At the time, Yu Jeong-joon, SK Group's vice chairman and head of SK Americas, stated that SK had established a strong presence across the US, centered on semiconductors, energy, and advanced technologies, and emphasized that SK Group's investments and assets in the US would expand significantly by 2030. SK hynix is also reportedly considering memory-production cooperation with Intel as part of the strategy.
SK hynix stated that Solidigm is reviewing various measures to strengthen its competitiveness, but added that “nothing has been finalized yet.”
Solidigm is a US company established in 2021 after SK hynix acquired Intel's NAND and solid-state drive (SSD) business. Solidigm is now a subsidiary of the AI company established by SK hynix earlier this year.
