SK Hynix explores options for $3B Chongqing plant as US export controls tighten

SK Hynix, the world’s second-largest memory chipmaker, is weighing its options for a plant in Chongqing, China valued at roughly $3 billion. The move comes as US export controls increasingly squeeze the company’s ability to maintain and grow its Chinese operations. The US Commerce Department revoked the validated end-user status that previously allowed SK Hynix to upgrade equipment at its Chinese facilities, including operations in Chongqing, Wuxi, and Dalian. New restrictions taking effect December 31, 2025, will effectively prevent the company from modernizing any of its China-based production lines. A factory caught between two superpowers The Chongqing site handles backend processing for both DRAM and NAND memory products. It was established as a joint investment with local Chinese authorities, making any potential restructuring a diplomatically sensitive affair on top of being a financially complex one. SK Hynix reportedly has no plans to outright divest from the Chongqing facility. The plant continues to serve a role in meeting legacy demand for memory products. The Chongqing facility historically handled a significant share of SK Hynix’s NAND packaging needs, though the comp...