Hynix Semiconductor, the world's second-largest computer memory chip maker, has recently won approval to build two plants in China.

Internet-based news provider Edaily earlier reported the plants would cost $US2billion, and the Korea Exchange Bank has stated that financers, representing more than 75% of the chip maker's debt, have now approved plans for the company build the plants in cooperation with Europe's STMicroelectronics.

Hynix, forecast its first annual profit since 1999 this year and is looking to the new plants to drive down costs and compete in a market forecast to grow 49% to $US26billion in 2004.