SK hynix reviews options for Chongqing plant amid U.S. export controls

SK hynix is reviewing strategic options for its semiconductor packaging facility in Chongqing, China, the company said Sunday, following reports it may sell a stake in the operation valued at approximately $3 billion. The move comes as the South Korean memory chipmaker faces tightening U.S. export controls that prevent equipment upgrades at its Chinese sites, prompting a significant shift in investment toward domestic production.

"We are reviewing various options for the Chongqing plant to strengthen its competitiveness, but nothing has been decided yet," an SK hynix official stated. The company is reportedly consulting with financial advisers about the possibility of introducing a strategic investor, with Chinese investment funds and semiconductor companies among potential candidates. Sources indicate the discussions remain in preliminary stages, and a transaction is not certain. Should a deal proceed, SK hynix is considering retaining a minority ownership stake rather than pursuing a complete divestiture.

The Chongqing facility, established in 2013, handles backend operations including packaging and testing for both DRAM and NAND flash memory products. It was originally set up...