SK Hynix’s reported effort to secure U.S. approval for additional chipmaking equipment at its Dalian factory has exposed a growing conflict between Washington’s restrictions on semiconductor manufacturing in China and its efforts to attract investment from South Korean chipmakers.

SK Hynix’s U.S. subsidiary Solidigm is reportedly seeking permission to install additional American equipment at the Chinese facility, with the proposed investment linked to plans for a NAND flash memory factory in the U.S.

SK Hynix confirmed that it was undertaking equipment installation in consultation with Washington but maintained that it was not seeking to expand the Chinese facility’s manufacturing capacity.