SK Hynix considers options for Chongqing facility, seeks investor for $3B China operation

SK Hynix, South Korea’s second-largest memory chipmaker and a critical supplier of high-bandwidth memory to Nvidia, is weighing strategic options for its semiconductor packaging facility in Chongqing, China. The company is considering bringing in an outside investor or potentially selling a stake in the operation, which could be valued at roughly $3 billion. What’s actually at stake in Chongqing The Chongqing plant, formally known as SK Hynix Semiconductor (Chongqing) Ltd., was established in 2013. It’s not a front-end wafer fabrication site. Instead, it handles backend operations: packaging and testing DRAM and NAND memory products. The company is reportedly consulting with advisors on its options, though no official confirmation has been released. The $3 billion approximate valuation reflects both the facility’s current operational importance and the strategic constraints now limiting its future. US export controls forced the calculation US export controls on semiconductor equipment to China took effect on December 31, 2025, and they removed waivers that had previously allowed companies like SK Hynix to maintain and upgrade their Chinese operations. Without those waivers, SK Hyni...