US Commerce Dept. holds up SK Hynix China equipment licenses, Reuters says

what happened

SK Hynix drew attention on Tuesday after Reuters reported that the U.S. Commerce Department has held up approval of American chipmaking equipment the company needs to expand output at its Dalian plant in China. Citing people familiar with the matter, the agency said the delay has also stalled the South Korean memory maker's plans to build a $45 billion fab in the U.S. state of New York.

Earlier reports said Solidigm, SK Hynix's U.S. subsidiary, was discussing a $45 billion chip plant in upstate New York with the Commerce Department. Last month, New York Governor Kathy Hochul was reported to be in advanced talks with Solidigm over a possible plant near Utica. Seeking Alpha says it has independently confirmed that Solidigm has spoken with the governor's office, and that the state is in contact with several other companies. SK Hynix, Solidigm and the Commerce Department did not immediately respond to requests for comment.

why it matters

The licence delay limits SK Hynix's ability to add production in China and fund that expansion, while its US investment plans remain uncertain.

market impact

SK Hynix shares: delayed equipment licences weigh on its China expansion plans

• ▼SK Hynix shares pressure down — delayed licences limit production expansion and funding in China

tags

instruments