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Hynix, Wuxi Industrial set up back-end JV

Posted: 20 May 2009 ?? ?Print Version ?Bookmark and Share

Keywords:back-end? joint venture? manufacturing?

Hynix Semiconductor Inc. and Wuxi Industrial Development Group Co. Ltd have announced plans to establish a back-end joint venture in China.

The South Korea memory maker will sell its owned back-end equipment in Korea and China to the established joint venture as part of its efforts to boost financial efficiency and secure $300 million.

By establishing a back-end joint venture, the portion of outsourcing of backend manufacturing will be extended up to 50 percent from the current of 30 percent. From this, Hynix will more focus on the core business of front-end manufacturing and extend R&D investment to the fullest.

Hynix had established the joint venture, Hynix-Numonyx Semiconductor Ltd (HNSL), with STMicroelectronics in 2005. HNSL has operated two fabrication facilities on the site. With the new back-end facility in China, Hynix will have both front-end and back-end facilities integrated in the area.

By implementing the integrated manufacturing system, Hynix will achieve reduction in both production and delivering costs. In this regard, the company will also be able to strengthen its dominant position in China market.

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