SK Hynix Eyes Sale of Chongqing Packaging Plant Valued at $3 Billion; Plans $38 Billion Korea Investment
SK Hynix is considering selling its packaging and testing plant in Chongqing, China, in a deal that could value the facility at about $3 billion, people familiar with the matter said. Separately, the memory-chip maker announced plans to invest 54 trillion won (about $38 billion) to build new DRAM and NAND production facilities in South Korea. The company is a key supplier of high-bandwidth memory chips to Nvidia. Discussions are preliminary and may not result in a transaction.
People familiar with the matter said the company has approached potential advisers to help evaluate the business, and a potential share sale could value the plant at up to $3 billion. SK Hynix is a key supplier of high-bandwidth memory chips to Nvidia. According to information on the company's website, SK Hynix entered the Chinese market more than 20 years ago, signing an agreement with Wuxi to build its first major overseas wafer fabrication plant. The Chongqing facility, operating as a large-scale semiconductor packaging and testing base, has driven the global growth of the company's NAND flash back-end production business.
Discussions remain at an early stage and may not lead to a final transaction. In addition, SK Hynix announced on Friday that it plans to invest 54 trillion won (about $38 billion) in South Korea to expand chip manufacturing facilities, building a new DRAM plant in Yongin and a new NAND production plant in Cheongju to meet demand for memory chips in the artificial intelligence era. A SK Hynix representative declined to comment on the matter.
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