SK hynix subsidiary Solidigm is reportedly planning to open its first NAND Flash manufacturing facility in the United States. To address global supply chain challenges, SK hynix is exploring ways to expand its production capabilities worldwide and create a more resilient operation against geopolitical events. Currently, Solidigm operates in the United States with its headquarters and R&D center, while all its manufacturing is based outside the country.

When SK hynix acquired Intel's NAND Flash manufacturing business in 2021 and established the Solidigm brand, the company continued manufacturing in China without expanding overseas. At present, Solidigm operates Fab 1 in Dalian, China, and has accelerated the construction of Fab 2 nearby. This expansion aims to increase production by 50% by 2027 to meet the rising demand for NAND Flash.

Solidigm owns and operates this facility, marking a resumption of expansion in mainland China after a four-year project freeze. Currently, Solidigm produces about 100,000 wafers per month of NAND Flash, so a 50% increase by 2027 would boost production to approximately 150,000 wafers per month. Solidigm will also begin producing its floating gate 3D QLC NAND Flash, which will feature over 200 active storage layers per chip.

This advancement will enable multi-terabyte SSDs for enterprise use, which is currently the primary market for these solutions. While QLC NAND Flash is slower than the typical TLC variant and has less endurance, AI workloads are demanding more capacity at higher densities.