SK Hynix is considering selling a stake in its semiconductor back-end processing plant in Chongqing, China, Bloomberg reported on the 7th (local time), citing multiple sources. If the sale proceeds, the stake could be valued at approximately $3 billion (around 4.2 trillion won).
According to the report, SK Hynix is currently discussing various options with advisors regarding the disposal of its stake in the Chongqing plant. Potential buyers include Chinese investment funds and local semiconductor firms. Even if a deal is reached, SK Hynix is also considering retaining a partial stake in the facility, sources indicated.
However, the sources cautioned that discussions remain at a preliminary stage, meaning the sale itself and the specific transaction structure have not been finalized, and a deal may ultimately not materialize. SK Hynix did not respond to Bloomberg’s request for comment on the matter.
The Chongqing plant, which began mass production in July 2014, is a core back-end manufacturing base for SK Hynix in China, primarily handling the packaging and testing of NAND flash memory. The facility has been one of the company’s key production hubs in the country, responsible for the final stages of memory semiconductor manufacturing.
Bloomberg projected that if the stake sale materializes, the transaction could be worth around $3 billion—a significant figure even when compared to major M&A deals in the global semiconductor industry. The Chinese funds and local chip companies named as potential suitors are reportedly interested in the asset to strengthen their domestic semiconductor supply chains.
Analysts suggest that SK Hynix’s review of the Chongqing plant stake sale is driven by external environmental shifts, namely the U.S.-China semiconductor rivalry and the restructuring of global supply chains. As the U.S. tightens export controls on semiconductor equipment to China, uncertainty surrounding the operation of production bases in the country has increased. Consequently, SK Hynix appears to be exploring adjustments to the ownership structure of the Chongqing facility as part of asset optimization and risk management efforts.
However, some industry observers believe that given the plant’s importance within SK Hynix’s global back-end processing network, a full sale is less likely than a partial divestiture or a shift to a joint venture structure with a local partner.