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SK Hynix weighs options to offload Chongqing packaging plant
The Chongqing back-end hub, valued by analysts at around US$3 billion in a possible stake sale, supports NAND packaging and testing while SK Hynix looks to boost the competitiveness of its packaging business.
South Korean chipmaker SK Hynix is considering options for a packaging and testing facility in Chongqing, China, as the company looks for ways to enhance the competitiveness of its packaging business, according to SCMP Economy. The review follows reports that SK Hynix was weighing potential moves for the plant after Bloomberg highlighted a possible stake sale.
Analysts said the potential deal fits a strategic pivot toward higher-margin AI memory products, with expectations that sales could help recycle capital away from lower-margin legacy operations. But the process may be difficult due to valuation hurdles and a volatile chip cycle, industry watchers cautioned.
The Chongqing site is described as a back-end hub for downstream packaging and testing tied to SK Hynix’s NAND flash products. SK Hynix also operates front-end wafer fabrication plants for DRAM and NAND in China, located in Wuxi and Dalian, respectively.
SCMP Economy cited analysts who linked the move to clearer profit growth in high-bandwidth memory, compared with standard NAND flash, and characterized the decision as a shift from lower-value back-end assembly to higher-margin front-end manufacturing. SK Hynix said on Monday that no final decisions had been made.