SK hynix weighs stake sale for Chongqing chip packaging plant

SK hynix is evaluating various strategic options for its semiconductor packaging and testing facility in Chongqing, China. According to reports, the company is considering attracting external investors or selling a stake in the plant, which is a major hub for NAND flash memory back-end production.

If a transaction occurs, the Chongqing plant's enterprise value is estimated at approximately $3 billion. Potential suitors include Chinese investment funds and local semiconductor companies. While SK hynix may retain a minority stake, discussions are in the early stages and a final deal is not guaranteed. An SK hynix official stated, "We are reviewing various options for the Chongqing plant to strengthen its competitiveness, but nothing has been decided yet."

The move comes as SK hynix accelerates domestic investments in South Korea to meet the surging demand for AI-related memory. The company recently approved approximately 54.3 trillion won ($38.3 billion) in additional investments for its Y2 DRAM facility in Yongin and its M17 NAND plant in Cheongju.