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SK hynix to expand Solidigm's Dalian fab capacity by 50% and considers NASDAQ IPO
Key points
- SK hynix to boost Solidigm's Dalian fab output by 50% by 2027.
- Solidigm considering NASDAQ IPO to raise capital.
- Expansion follows increased demand for high-capacity SSDs.
- U.S. licenses allow equipment upgrades in Chinese fabs.
Solidigm's Dalian Fab Expansion
SK hynix has reportedly resumed investments in its Solidigm subsidiary's fab in Dalian, China. The company plans to increase the fab's output by 50% by 2027. This expansion involves completing the second phase of the facility and installing production equipment starting in November, with mass production of floating gate 3D NAND flash anticipated in the first half of 2027.
Capacity Increase Details
The second phase of the Dalian fab is designed for a wafer output capacity of approximately 50,000 wafer starts per month (WSPM). This addition will bring Solidigm's total NAND production capacity in Dalian to around 150,000 WSPM, a 50% increase from the existing 100,000 WSPM capacity of the first phase. This increased capacity will support the production of high-capacity SSDs, including 245TB-class models.
Potential NASDAQ IPO for Solidigm
Alongside the production expansion, SK hynix is reportedly considering listing some of Solidigm's shares on NASDAQ. This move aims to raise capital while allowing SK hynix to retain control over its North America-based subsidiary. The timing of the capacity reconsideration aligns with Solidigm's potential initial public offering.
Context and Market Factors
The decision to expand follows a period of suspended investments due to a memory market downturn in 2022-2023 and U.S. export controls. However, strong demand for solid-state storage, particularly for Solidigm's high-capacity SSDs, has prompted the resumption of expansion plans. The U.S. government's granting of annual licenses to SK hynix and Samsung for shipping semiconductor production equipment to their Chinese fabs through 2026 has also facilitated these upgrades, enabling the use of new process technologies.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
SK hynix is resuming investments to expand its Solidigm subsidiary's NAND flash production capacity by 50% at its Dalian, China fab, with mass production expected by early 2027. Concurrently, the company is reportedly exploring a NASDAQ IPO for Solidigm to raise capital while maintaining control. This expansion addresses increasing demand for high-capacity SSDs and follows the granting of U.S. licenses for shipping semiconductor equipment to Chinese fabs.