SK Hynix weighs $3 billion stake sale in China chip facility

The Nvidia memory supplier is reviewing options for its Chongqing packaging and testing facility as it separately plans a $38 billion expansion in South Korea.

SK Hynix is considering options for its semiconductor facility in Chongqing, China, including bringing in an outside investor to help accelerate growth, according to Bloomberg.

The Nvidia memory supplier is speaking with potential advisers about a review of the business, with a possible stake sale valuing the facility at around $3 billion.

Potential buyers could include Chinese investment funds and industry companies. SK Hynix could retain a minority stake in the facility following any transaction.

The Chongqing site serves as a major semiconductor packaging and testing base and supports the company’s NAND flash production.

Discussions remain preliminary and may not result in a transaction.

The review comes as SK Hynix separately announced plans to spend 54 trillion won, around $38 billion, expanding chip production in South Korea.

The company plans to build a new DRAM manufacturing facility in Yongin and a NAND fabrication plant in Cheongju as demand for memory chips used in AI systems continues to grow.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.