SK Hynix Inc of South Korea plans to increase legacy chip production capacity at its chip manufacturing facilities in China, according to market research firm TrendForce.

According to the TrendForce report, the world's second-largest memory chip maker's long-term strategy involves shifting capacity expansion back to South Korea, while its China chip production site caters to domestic demand in China and the legacy DRAM memory chip market.

On Thursday, SK Hynix did not immediately respond to a request for comment. TrendForce stated that its report was based on its "most recent research," but did not provide sources.

According to the report, SK Hynix planned to reduce the output of legacy chips at its China factory, but instead decided to increase production capacity due to U.S. restrictions on chip-making equipment exports to China, which require licences for U.S. companies to export advanced chips and chip-making equipment in an effort to slow China's technological advancement.

In March, SK Hynix's CEO stated that the company will request another year of exemption from the tariffs.

Last year, SK Hynix announced that it had received a one-year licence from the US Commerce Department to supply chip production equipment in Chinese facilities without the need for additional licencing.