SK Hynix China Restructure: Shanghai Closed, Focus Wuxi

According to a report by The Chosun Daily, SK Hynix, one of South Korea's leading semiconductor companies, is undergoing a strategic overhaul of its operations in China.

The company has outlined plans to close its Shanghai office, established in 2006, and transition its focus to Wuxi, where its semiconductor manufacturing facility is situated, as the new central hub for its Chinese operations.

As revealed in SK Hynix's 2023 audit report released on March 17th, the process of winding down the Shanghai office commenced in the fourth quarter of 2023. The Shanghai sales office has been operational for 17 years since its inception.

SK Hynix currently operates three production facilities in China, including the Wuxi DRAM plant, Dalian NAND flash memory plant, and Chongqing packaging plant.

Reports indicate that the activities in Wuxi have emerged as the cornerstone of SK Hynix's operations in China, while the revenue generated by the Shanghai office has experienced a consistent decline.

Considering the geographical proximity of Shanghai and Wuxi, and the strategic shift of SK Hynix's Chinese operations to Wuxi, the decision to wind down the Shanghai sales office has been made to optimize efficiency.

Moreover, SK Hynix intends to restructure less critical sales offices initially as part of its risk mitigation strategy.