Amkor Technology is looking at strategic options for its China business, including a possible partial sale, Bloomberg reported, citing unnamed sources.
The US-based outsourced semiconductor assembly and testing provider has enlisted an adviser to prepare a carve-out of the unit and sound out early interest from potential buyers.
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In one considered scenario, Amkor would hold on to a minority stake in the business, which the sources estimated could be worth $1bn to $1.5bn.
Asian investment firms and industry players are seen as the most probable bidders, they added.
The sources cautioned that talks are at an early stage, no final decisions have been taken, and terms – including the eventual valuation – could still shift.
Amkor did not respond to a request for comment from Bloomberg.
A move of this kind would place Amkor among a growing list of multinational companies reassessing their footprint in China.
Amkor first entered China in 2001 with a packaging facility in Shanghai.
Three years later, it expanded its footprint in the city by acquiring a second semiconductor plant from IBM.
SK Hynix is reportedly looking to bring in an outside investor for its Chongqing plant to support faster growth, according to sources who spoke to Bloomberg last week.
The China review comes as Amkor has been striking major partnerships elsewhere.
In July, the company signed a multiyear, $1.5bn agreement with Nvidia covering advanced semiconductor packaging and testing technology for next-generation AI and accelerated computing platforms.
That followed a ten-year tie-up with Taiwan Semiconductor Manufacturing, unveiled a month earlier.
Last month, China created a new state-backed investment vehicle to strengthen control over its overseas mineral supply chains.
