SKHY Tracks Worst Month Since Nasdaq Debut: SK Hynix Reportedly Wants To Ship More Chip Tools To China Before Building In US

SK Hynix’s unit Solidigm is reportedly seeking approval to export more equipment from Lam Research, Applied Materials and KLA Corp. to its facility in Dalian, China.

• SK Hynix shares have fallen 20% this month.
• The company’s U.S. unit is tying plans for a new NAND factory to U.S. approval for additional chipmaking equipment shipments to China.
• Rising U.S. inflation, concerns over AI spending and growing competition from Chinese chipmakers have added to pressure on semiconductor stocks.

South Korea's SK Hynix is seeking U.S. approval to export chipmaking ​equipment to China to increase production there as a condition of building a factory in America, Reuters reported late Wednesday, citing people familiar with the matter.

SKHY stock fell 6.5% in overnight trading late Wednesday, after a similar drop in the regular session, amid a global selloff in chip stocks over fresh concerns about the durability of AI spending and the high valuations of AI-linked companies.

SKHY stock has dropped 20% so far this month, heading for its worst monthly move since its Nasdaq listing in July. On Stocktwits, retail sentiment for the stock remained ‘bullish,’ unchanged over the past seven days.

Solidigm, SK Hynix’s U.S. unit, wants to install equipment to manufacture NAND flash memory chips in unused space at SK Hynix’s facility in Dalian, China, and is seeking a U.S. export license for additional ⁠equipment from Lam Research, Applied Materials and KLA Corp.

Solidigm is now making its plan to build a new U.S. NAND factory contingent on the license, Reuters reported. Expanded production from China, through the Dalian factory, would help Solidigm fund the U.S. facility, the report added.

The move comes as the Donald Trump administration pushes foreign semiconductor manufacturers, including SK Hynix and Samsung Electronics, to expand manufacturing in the U.S.

US Export Restrictions Complicate Plans

Last year, the Commerce Department revoked exemptions that let SK Hynix and Samsung ship U.S. equipment to their Chinese factories without individual licenses. The department later allowed equipment shipments to keep existing operations running but said it did not expect to approve licenses for capacity expansions or technology upgrades, Reuters reported.

SK Hynix received a license covering its Dalian facility for 2026, but the authorization limits equipment quantities. Reuters reported that approval for additional equipment in 2027 remains pending.

Global Chip Rout

Global semiconductor stocks extended their selloff on Thursday as hotter-than-expected U.S. inflation data heightened interest-rate concerns, compounding worries about AI spending and intensifying Chinese competition.

U.S. consumer prices rose 3.7% year-over-year in September, up from 3.4% in August. Meanwhile, reports of advances by Chinese memory chipmaker ChangXin Memory Technologies (CXMT) have raised fears of tougher competition for established players, while Broadcom CEO Hock Tan’s recent warning likening AI investments to “casino gambling” has added to questions about whether the massive spending on AI infrastructure will pay off.

The iShares Semiconductor ETF (SOXX) fell for a seventh consecutive session on Wednesday and dropped 1.7% overnight, while South Korea’s Kospi tumbled more than 7% on Thursday, with Samsung and SK Hynix among the biggest decliners. 

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