SK Hynix Stock Drops 11% After Seeking US Nod for China Equipment

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SK Hynix stock closed down 11% at 1,262,000 won on Thursday, a drop of 157,000 won.
The company is asking Washington to approve more U.S. chip equipment for its Dalian plant in China.
Solidigm, its U.S. unit, ties the request to plans for a new NAND factory in the United States.
Solidigm is weighing an IPO as early as 2027 to help pay for the build.
The Commerce Department has revoked exemptions that let SK Hynix and Samsung ship U.S. tools to China without licenses.

SK Hynix (000660) stock closed at 1,262,000 won on Thursday, down 157,000 won or 11%. The drop came during a wider sell-off in tech.

SK hynix Inc., SKHY

Reuters reported that the company wants U.S. approval to send more American-made chip equipment to its Dalian plant in China. The gear would go into an unused section called Mod B.

SK Hynix says the work is happening in close consultation with the U.S. government and under its authorization. It also says it is not trying to expand the plant’s capacity.

Mod B was finished in 2023. It was never fully equipped after the memory market turned down.

The market has since flipped. A global memory chip shortage has pushed prices up sharply this year.

The added output would be NAND flash, which is used in solid-state drives. Those drives power data centers for AI and cloud computing.

Solidigm’s U.S. Factory Plan

The export license is being sought by Solidigm, the U.S. unit of SK Hynix. It links the request to its plan for a new NAND factory in the United States.

Reuters reported last month that Solidigm was weighing that plant. Building one can cost billions of dollars and take years.

A source told Reuters the extra China output would help pay for the U.S. project. It could also serve as a bridge to more production at home.

Solidigm is also considering an IPO as early as 2027. That would be another way to raise money for the build.

The Dalian site runs on tools from Lam Research, Applied Materials and KLA. Those stocks fell about 5%, 4% and 3% on Thursday.

Export Rules in Play

Washington wants foreign chipmakers to build more capacity in the U.S. It also limits equipment exports to China to slow work on advanced chips for AI and military use.

The Commerce Department revoked exemptions that let SK Hynix and Samsung Electronics ship U.S. tools to China without separate licenses. That is why Solidigm needs an individual license.

On TipRanks, U.S.-listed SKHY holds a Strong Buy rating from 11 analysts. The average price target is $254.70, which implies about 73% upside.

SKHY fell about 6% on Thursday. It is down about 12% since its July 2026 IPO.

No decision on the license has been announced. Solidigm’s IPO is still under consideration.