SK Hynix is weighing strategic options for its $3 billion Chongqing manufacturing facility, potentially including a minority stake retention, according to Bloomberg News.
The South Korean chipmaker has not disclosed a decision timeline or the specific stake percentage it would retain. SK Hynix built the plant in China's Chongqing province as a major investment in memory chip production outside South Korea, but geopolitical tensions and U.S. export restrictions on advanced semiconductor technology to China have reshaped the calculus for chipmakers operating in the region.
SK Hynix is one of three major DRAM and NAND flash producers globally, alongside Samsung and Micron Technology. The Chongqing facility produces DRAM chips and has been a significant part of the company's China operations. U.S. restrictions imposed since 2022 have limited what advanced processes and equipment SK Hynix can deploy there, constraining the plant's competitive position.
China accounts for roughly 20 percent of SK Hynix's total revenue, making operations there strategically important despite regulatory headwinds. The company has faced pressure to balance its exposure to the Chinese market against U.S. government concerns over technology transfer and national security.
Other memory chipmakers have also reassessed their China footprint in recent years. Samsung has maintained its China DRAM plants but has been cautious about new investments, while Micron halted sales of advanced DRAM and NAND products to China in 2023 following U.S. export controls.
SK Hynix is evaluating whether a joint venture, partial sale, or other partnership structure could better position the Chongqing plant while managing regulatory risk. Retaining a minority stake would allow the chipmaker to maintain some operational involvement and upside while reducing capital exposure and control risk in a jurisdiction where foreign ownership constraints exist.
No announcement on the outcome of this review has been made. The timing of any decision or divestment remains unclear.
