Solidigm, a subsidiary under SK hynix (000660.KS), is reviewing plans to build its first NAND flash production base in the United States, according to industry sources. With SK hynix already building a back-end packaging fab in Indiana, adding front-end production would accelerate the company's buildout of a memory supply chain inside the U.S.
Solidigm is reviewing candidate sites and detailed terms for a NAND mass-production line on the U.S. East Coast, industry sources said on the 18th. The company was launched after SK hynix acquired Intel's NAND business for $9 billion, or about 12 trillion won, in late 2021.
Solidigm currently operates production facilities in Dalian, China, while running only its headquarters and a research and development center in the U.S. Its first Dalian plant is in operation, and a second plant is scheduled to reach mass production in the first half of next year. A NAND line in the U.S. would be Solidigm's first production base in the country.
Behind the investment review is surging demand for enterprise solid-state drives, or eSSDs, driven by the spread of artificial intelligence data centers. Solidigm has a competitive edge in high-capacity eSSDs based on quad-level cell technology, which stores four bits in a single memory cell.
As the volume of data processed in AI training and inference climbs, data centers are rapidly increasing demand for high-capacity storage. Global NAND revenue rose 70% in the second quarter from the previous quarter, while NAND prices jumped 55% over the same period, according to market research firm Counterpoint Research.
If Solidigm builds a NAND fab in the U.S., SK hynix would secure front-end production capacity there on top of its back-end operations. The company is investing more than $4 billion, or about 5.53 trillion won, to build an advanced packaging plant in West Lafayette, Indiana. It is also reviewing cooperation options for memory chip production, including leasing Intel's sites and plants in the U.S.
"Solidigm is reviewing various options to strengthen its competitiveness, but nothing has been finalized," an SK hynix official said.
