SK Hynix-owned Solidigm is considering a U.S. factory for NAND storage chips used in phones, computers, and data centers, a move that would reduce its dependence on China as Washington pressures foreign chipmakers to manufacture in America. Upstate New York has emerged as the leading candidate, Reuters reported Friday, citing three people familiar with the discussions. No agreement has been reached, and the location, investment, capacity, and construction schedule remain undecided.

Solidigm said it regularly evaluates options to improve its long-term competitiveness but hasn't chosen a course of action. SK Hynix similarly confirmed it is reviewing options without committing to the factory. The proposed project would be separate from SK Hynix's discussions about producing memory chips at Intel's planned Ohio facility. Solidigm currently relies on one NAND production site, the Dalian facility in China. Adding a U.S. factory would reduce Solidigm's dependence on Dalian while limiting its exposure to potential tariffs and restrictions on chipmaking equipment exports to China.

The Trump administration wants South Korean and Taiwanese chipmakers to expand production in the United States. Commerce Secretary Howard Lutnick has threatened chip tariffs as high as 100% on companies that don't make sufficient American investments. South Korea wants SK Hynix and Samsung to continue investing at home. Seoul has urged both companies to accelerate construction of a domestic semiconductor cluster that could attract hundreds of billions of dollars in spending. South Korean President Lee Jae Myung acknowledged Friday that the U.S. and South Korean demands remain controversial.

New York offers up to $10 billion in performance-based Green CHIPS incentives to attract semiconductor factories.