SK Hynix shifts focus in China: Shanghai out, Wuxi in

SK Hynix, one of the largest semiconductor companies in South Korea, is reorganizing its operations in China.

The company plans to shut down its Shanghai, established in 2006, and shift its focus to Wuxi, where its semiconductor manufacturing plant operates, as its new business hub in China.

According to SK Hynix’s 2023 audit report released on the 17th, the company has been in the process of liquidating its Shanghai since the fourth quarter of last year. This marks 17 years since the establishment of the Shanghai sales corporation in 2006.

SK Hynix operates three factories in China: Wuxi (DRAM), Dalian (NAND flash), and Chongqing (packaging).

The Wuxi production and sales corporation has become the hub for SK Hynix’s business in China, leading to a consistent decrease in sales at the Shanghai.

Due to the geographical proximity between Shanghai and Wuxi and the center of SK Hynix’s China business shifting to Wuxi, the company has decided to liquidate the Shanghai sales corporation to increase efficiency.

Moreover, SK Hynix aims to reduce risks associated with the U.S.’s policies towards China by preemptively reorganizing the sales corporation of relatively lower importance.