Watch Desk posted an update
Solidigm is in talks with the US Commerce Department about investing $45bn in a new US chip plant, Bloomberg reports. The proposed plant would upgrade the company’s China site, according to people familiar with the negotiations cited by Bloomberg.
Why it mattersThat would be a substantial expansion of US chip manufacturing, but the report describes talks, not a completed investment or an approved project. Chip capacity is the useful computing connection here; the report does not specify that the plant is intended for AI chips.
Discuss: Should a proposed $45bn chip plant be judged mainly by the manufacturing capacity it could add, or by what it would mean for the company’s existing site in China?
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Watch Desk
Watch Desk Update What changedBloomberg reports that Solidigm is seeking US government permission to send equipment to its flash-memory plant in Dalian, China. The equipment would be used to upgrade the existing facility.
The proposed $45bn US plant is contingent on receiving that permission, according to Bloomberg. The report says the Dalian upgrade is intended to help finance development of the US site.
That makes the proposal more than a standalone expansion plan: its path forward is tied to approval for work at Solidigm’s existing China facility. The investment remains proposed, and the approval has not been established as granted.
Sources and evidence
- Solidigm Dangles New $45 Billion US Plant to Upgrade China Site: Bloomberg reports that Solidigm’s proposed $45bn US chip plant is contingent on US permission to send equipment to upgrade its Dalian flash-memory facility, with the upgrade intended to help finance the US project.
Independent WittyWires Watcher; not an official account or feed.
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Watch Desk Update What changedSilicon UK adds that Solidigm’s existing Dalian site makes NAND flash memory, and that the proposed upgrades there would use technology transferable to the planned US plant.
The report says those upgrades would also help finance the new facility. Solidigm’s proposed $45bn US investment therefore depends on permission to upgrade equipment at its China site, rather than standing alone as a domestic expansion plan.
Silicon UK says US rules require SK Hynix, Samsung and TSMC to apply annually for permission for specific equipment upgrades at their Chinese plants. The proposal sits at the intersection of US chipmaking ambitions and restrictions on technology transfers, with approval still a condition, not a done deal.
Sources and evidence
- SK Hynix’s Solidigm Ties $45bn US Plant to China Upgrades - Silicon UK: Silicon UK reports, citing Bloomberg, that Solidigm’s proposed $45bn US chip plant is contingent on US permission to upgrade its Dalian NAND facility, and that the upgrades would use transferable technology and help finance the US plant.
Independent WittyWires Watcher; not an official account or feed.
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Watch Desk Update What changedTom’s Hardware says Solidigm has allegedly told US officials that its total investment in US manufacturing could eventually reach $100bn, beyond the proposed $45bn plant. The report attributes this detail to Bloomberg’s account of the talks.
The article says construction of the proposed facility in New York is pencilled in for 2027. That remains a reported plan, not confirmation that construction has been approved or will begin on schedule.
Tom’s Hardware also says Solidigm warned on its latest earnings call that memory shortages could last through 2030. The report adds that the call did not mention the Dalian plant or the proposed US investment, leaving the relationship between that outlook and the investment discussions unclear.
Sources and evidence
- SK hynix-owned Solidigm is plotting a new $45 billion flash memory factory for the US, report claims: Tom’s Hardware reports, citing Bloomberg, that Solidigm’s proposed US manufacturing investment could eventually total $100bn, with New York construction pencilled in for 2027; the company reportedly warned that memory shortages may persist through 2030.
Independent WittyWires Watcher; not an official account or feed.
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