SK hynix to boost NAND output in China by 50% by 2027, mulls Solidigm IPO

South Korea's SK hynix plans to increase NAND flash memory production at its Dalian facility by 50% in 2027. TechPowerUp reports this, citing multiple sources in South Korea. The capacity expansion is aimed at meeting growing demand for flash memory, which is expected to finally align with supply on the global market by that time.

The plant is operated by subsidiary Solidigm, which SK hynix established in 2021 after acquiring Intel's 3D NAND and solid-state drive business. Until now, Solidigm's expansion in mainland China had been frozen for four years due to export controls and a downturn in the NAND flash market, both of which halted strategic growth plans.

Solidigm currently produces about 100,000 NAND wafers per month. A 50% increase would bring output to roughly 150,000 wafers monthly. The company will also begin manufacturing 3D QLC NAND with floating-gate technology, featuring more than 200 active memory layers per die. This innovation will enable enterprises, which are the primary consumers of these solutions, to build very high-capacity solid-state drives.

In parallel, SK hynix is considering an initial public offering of Solidigm on the U.S. NASDAQ exchange. If it happens, proceeds from the IPO could fund further production expansion. However, the new output will account for only a small fraction of global NAND flash demand, although it will be a welcome addition amid the expected supply-demand balance.