SK Hynix considers selling Chongqing chip plant to focus on AI memory

SK Hynix is contemplating the sale of its packaging facility located in Chongqing, China, as it aims to concentrate on AI memory products with higher profit margins. On Monday, the company announced that it is assessing various options, including the possibility of selling a stake in the facility, which could be valued at approximately US$3 billion. Although no definitive decisions have been reached, the Chongqing site is responsible for NAND flash memory packaging and testing. Additionally, SK Hynix has DRAM and NAND fabrication plants in Wuxi and Dalian. Analysts interpret this potential divestiture as a move away from low-margin legacy products toward high-bandwidth memory (HBM), despite facing challenges like valuation issues and a fluctuating chip market.