Potential $45 Billion Project Puts SK hynix’s U.S. Solidigm Expansion Under Discussion
Key Facts
Local reports have discussed a potential $45 billion chip plant project in Marcy, New York, which could create about 5,000 jobs, according to ClickOnNY, citing the Oneida County executive. SK hynix has not announced an agreement or confirmed that Solidigm will carry out a project of this scale. The company said Solidigm’s current production facilities have limited capacity to meet rising memory demand and that it needs additional facilities in the United States. It said, however, that the investment’s timing, size and financing methods are still under review. In its statement, the company said "expanding Solidigm’s production capacity remains a priority," without specifying a date or investment amount.
Reuters reported that no agreement had been reached on Solidigm’s U.S. investment and that key project details remained under discussion. The agency also said the potential plant could reduce Solidigm’s reliance on its only NAND production facility in Dalian, China, and limit its potential exposure to U.S. tariffs and restrictions on exports of chipmaking equipment to China. Reuters, citing two people familiar with the matter, reported that SK hynix was seeking U.S. approval to export chipmaking equipment to China to increase production there, as a condition for building a plant in the United States. The company said on October 1 that no decision had been made on Solidigm’s future business and capital plans. Reuters also noted that the proposed U.S. project was separate from SK hynix’s talks with Intel about manufacturing memory chips at Intel’s Ohio facility.
On October 23, SK hynix announced that it had paused its review of pre-IPO and initial public offering options for Solidigm, citing capital market conditions and stock price trends. It said the move "does not reflect any change in Solidigm’s growth prospects or investment needs." That means, according to the company, pausing the IPO review did not eliminate the unit’s need to expand production, while the expansion’s financing, size and timing remained undecided. In the memory market, Reuters quoted an industry expert as saying NAND memory prices had risen sevenfold since mid-2023. The increase coincided with the company’s search for additional production capacity, but on its own it does not establish the value of the Marcy project or confirm its eventual link to Solidigm.
The potential project comes alongside other investments SK hynix has announced in the United States, but differs in production type and schedule from the advanced packaging facility the company is building in Indiana. The company said next-generation high-bandwidth memory production in Indiana is planned to begin mass production in the second half of 2029. The Marcy facility, by contrast, remains without an announced agreement, and the company has not settled its investment details. The reported figure of $45 billion is an estimate for a potential project cited in local coverage, not a formal investment commitment by SK hynix. On October 23, the company said its review of IPO options had been paused, while Solidigm’s investment needs and growth prospects remained unchanged.