According to a report by Korean media outlet ZDNet, Solidigm, a subsidiary of SK Hynix, is considering constructing its first NAND flash memory production base in the United States. The company is currently in the stage of coordinating detailed plans, including factory site selection and investment timing.
Drivers for Expansion: AI Demand Surge and Customer Synergy
As the construction of artificial intelligence infrastructure accelerates, demand for NAND flash memory has climbed significantly. This potential U.S. factory is viewed as a strategic move by Solidigm to strengthen cooperation with local American customers, aligning with SK Group’s recent expansion of U.S. AI investments led by Chairman Chey Tae-won.
Solidigm is the U.S. legal entity established after SK Hynix acquired Intel’s NAND flash business in late 2021, with a total acquisition value of $9 billion. Currently, Solidigm operates a factory in Dalian, China, where equipment investment for the second plant is scheduled to begin in the third quarter of this year, with mass production expected to officially start in the second half of 2027. While Solidigm has its headquarters and R&D centers in the U.S., it does not yet have a production presence there.
Site Selection and Product Focus: Eyeing the U.S. East Coast and QLC NAND for AI Servers
Reports indicate that Solidigm is scouting locations in the eastern United States for its first production base and is currently holding internal discussions regarding specific sites, product categories, and mass production timelines.
According to insiders, Solidigm is pushing to build a mass production line to meet the demand for NAND flash from large U.S. tech companies for their AI servers. The investment plan will be further refined based on negotiations for Long-Term Agreements (LTAs) with customers.
Solidigm has long focused on developing QLC NAND flash for AI data centers. QLC technology stores 4 bits of data per cell, making it more advantageous for achieving high-capacity SSDs compared to technologies like TLC, which stores 3 bits.
With the accelerated deployment of next-generation AI platforms such as Blackwell and Vera Rubin, along with related data centers, demand for high-capacity enterprise SSDs continues to rise, thereby driving up the need for high-capacity NAND.
Data from CFM shows that the global NAND Flash market size continued to grow in Q2 2026, rising 73.1% quarter-on-quarter to $76.776 billion. Driven by a doubling of revenue in enterprise SSDs and the continued ramp-up of advanced 321-layer products, SK Hynix (including Solidigm) saw its overall NAND Flash sales revenue increase by 89.1% quarter-on-quarter, capturing an 18.5% market share to rank second globally.
Group Strategy Linkage: ADR Listing, Advanced Packaging, and Potential IPO
Solidigm’s U.S. investment plan also echoes SK Group’s broader direction of expanding AI and semiconductor investments in the United States. Solidigm is reportedly exploring pre-IPO financing and future listing arrangements, though specific plans have not yet been finalized.
At the SK Hynix ADR listing commemoration event held in New York this July, SK Group Chairman Chey Tae-won stated, "In addition to the advanced packaging facility in Indiana, we are considering additional investments. If conditions such as power, water, labor, and supply chains are met, building memory production factories is also a possibility."
Additionally, recent reports suggest that SK Hynix and Intel are exploring memory production cooperation within the U.S. Although SK Hynix officially stated that it is exploring various options to enhance its global competitiveness and has not finalized any specific plans, the industry generally believes such cooperation is feasible given the expected long-term growth in demand for AI memory like High Bandwidth Memory (HBM) in the U.S. market.
Regarding the U.S. equipment investment plans, an SK Hynix representative stated that Solidigm is reviewing various measures to enhance its competitiveness, but no final decisions have been made.
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