SK hynix weighs stake sale in China packaging plant: report

The chipmaker is reviewing options including a partial sale of its Chongqing packaging plant, though it says no decision has been made.

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SK hynix's headquarters in Icheon, Gyeonggi, on July 29

SK hynix is reportedly considering a business restructuring plan that could include selling a stake in its semiconductor packaging plant in Chongqing, China, although the company said nothing is finalized. 

Bloomberg reported Friday, citing multiple sources, that SK hynix is discussing options with advisers including the sale of a stake in its Chongqing packaging plant in China.

Chinese investment funds and local semiconductor companies are reportedly among the potential investors. SK hynix is also said to be considering retaining a minority stake even if a stake sale goes through.

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The discussions are still at an early stage and may not result in an actual transaction, Bloomberg reported. The plant could be valued at about $3 billion if a stake sale is completed.

SK hynix did not confirm the report.

“We are reviewing various options to strengthen our business competitiveness, but nothing has been decided,” SK hynix said.

The Chongqing plant is one of SK hynix’s key semiconductor back-end processing bases in China. It handles packaging, in which semiconductor chips are assembled into finished products, as well as testing to assess their performance. The plant has supported SK hynix’s back-end production of NAND flash memory.


BY PARK JONG-SUH [kim.jiye@joongang.co.kr]

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

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