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SK Hynix Responds to Rumors of Chongqing Plant Sale in China: "Nothing Has Been Confirmed"

SK Hynix has officially stated that "nothing has been confirmed" regarding rumors of a stake sale in its NAND flash post-process production base in Chongqing, China. On the 10th, the Korea Exchange requested SK Hynix through the KOSPI Market Division to issue a disclosure regarding the "sale of sta

Oseong Kwon
Staff Reporter
4 min read
SK Hynix Responds to Rumors of Chongqing Plant Sale in China: "Nothing Has Been Confirmed"
CBC News

SK Hynix has officially stated that "nothing has been confirmed" regarding rumors of a stake sale in its NAND flash post-process production base in Chongqing, China.

On the 10th, the Korea Exchange requested SK Hynix through the KOSPI Market Division to issue a disclosure regarding the "sale of stake in the Chongqing plant in China," which was raised by foreign media outlets. In response, SK Hynix met the disclosure deadline at 6 p.m. that day and clarified, "We are reviewing various measures to strengthen the competitiveness of our packaging business, but nothing has been confirmed to date." The company added that it plans to re-disclose information either at the time specific details are confirmed or within one month.

Recently, foreign media outlets including Bloomberg reported that SK Hynix is discussing various strategic options, including the sale of a stake in the Chongqing plant, with its advisors. The company is also reviewing a plan to transfer only a partial stake rather than the entire holding while retaining the remainder. Chinese investment funds and local semiconductor companies are being mentioned as potential buyers, and if a deal is reached, the enterprise value of the Chongqing plant is estimated at around USD 3 billion (approximately KRW 4 trillion).

The Chongqing plant, which has been in operation since July 2014, is a key post-process base responsible for packaging—assembling chips produced from semiconductor wafers into finished products—and conducting performance and quality testing. In addition to this site, SK Hynix operates various production facilities in China, including a DRAM manufacturing plant in Wuxi.

Industry analysts interpret this review of a stake sale as a move to respond to the U.S. semiconductor regulatory environment against China. It is expected to lead to a restructuring of the business, adjusting the role of general-purpose post-process production bases in China and concentrating investment capabilities on strengthening advanced memory production hubs in South Korea. However, the discussions are currently at an early stage, and matters such as whether to sell the stake and the scale of the sale have yet to be decided.

Oseong Kwon
Staff Reporter

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