SEOUL, KOREA: Hynix Semiconductor Inc. announced that the company will establish a back-end joint venture in China with Wuxi Industrial Development Group Co. Ltd.
Hynix will sell its owned ‘Back-End’(‘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’ (‘front-end’) manufacturing and extend R&D investment to the fullest.
Hynix had established the Joint Venture, Hynix-Numonyx Semiconductor Ltd. (‘HNSL’), with ST Microelectronics(Numonyx V.A. since 2008) in 2005 and 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 Chinese market.
Many of DRAM manufacturers have separately managed back-end business in abroad in order to strengthen effectiveness of their investment and manufacturing.