SK hynix's NAND flash subsidiary, Solidigm, is resuming expansion of its fab in Dalian, China, after a four-year freeze on capacity plans there, according to reports cited by TechPowerUp and Tom's Hardware. Solidigm was formed in 2021 after SK hynix acquired Intel's 3D NAND and SSD business, but expansion in China was halted due to a downturn in the NAND flash market in 2022-2023 and U.S. export controls restricting shipments of advanced fab tools to China.
Reports from Sedaily, relayed by Tom's Hardware, say Solidigm has completed construction of a second phase at the Dalian facility and plans to begin installing production equipment as early as November. The existing fab currently produces about 100,000 wafers per month, and the new phase is designed to add roughly 50,000 wafer starts per month, boosting total capacity by about 50% to around 150,000 wafers per month by 2027.
The expanded facility will produce floating gate 3D QLC NAND flash featuring more than 200 active storage layers per chip, enabling multi-terabyte SSDs aimed primarily at enterprise customers. Tom's Hardware reports that Solidigm intends to begin making this floating gate 3D QLC NAND in Dalian in the second half of 2026, with mass production at the new phase expected in the first half of 2027; TechPowerUp does not specify these dates but notes the advancement will support multi-terabyte SSDs for enterprise use. The additional capacity is also expected to help Solidigm produce 245TB-class SSDs, due to be introduced in the coming months, in larger quantities by 2027.
The renewed investment follows a change in U.S. policy: late last year, the U.S. government granted SK hynix and Samsung annual licenses, running through 2026, to ship semiconductor production equipment containing U.S.-developed technology to their Chinese fabs, replacing earlier open-ended exemptions. This has allowed both companies to upgrade their China-based fabs and introduce newer process technologies there.
Separately, SK hynix is reportedly considering an initial public offering for Solidigm on NASDAQ. According to the Korea Herald, as cited by Tom's Hardware, SK hynix would aim to raise capital while retaining control over the subsidiary; unofficial reports suggest the IPO could raise up to $7 billion, which could help fund further expansion. Tom's Hardware notes that SK hynix has not officially confirmed the IPO, and a regulatory filing on August 5 said only that Solidigm was considering various ways to improve its competitiveness, with no final decision made.
Solidigm currently holds roughly a quarter of the data center-grade SSD market, according to Tom's Hardware. Both sources note that global NAND flash production is expected to reach balance with demand in 2027, with TechPowerUp adding that Solidigm's planned output increase represents only a small fraction of overall global NAND demand.