Semiconductor company Hynix has announced plans to build a semiconductor back-end joint venture in Wuxi with Wuxi Industrial Development Group.

To increase financial liquidity and to improve financial structure, Hynix will sell its owned back-end equipment in Korea and China for USD300 million, which equals about CNY2.04 billion.

In addition, the company plans to increase the portion of outsourcing of back-end manufacturing from the current 30% to 50%. In the next five years, Hynix will save investment costs of over CNY10 billion and put these funds into its core business of front-end manufacturing and research and development.

In 2005, Hynix established the joint venture, Hynix-Numonyx Semiconductor, with STMicroelectronics. With the founding of the back-end plant in Wuxi, Hynix will have a complete set of production line from front-end to back-end facilities in China, which is expected to save production and distribution costs for the company. Hynix said that it will provide back-end manufacturing contacts to the joint venture in the next five years while sending specific staff to manage the equipment and implementing trainings to improve the competitiveness of the joint venture.

Hynix Semiconductor of Icheon, Korea, is one of the world's leading memory semiconductor suppliers, offering dynamic random access memory chips, flash memory chips and CMOS image sensor for a wide range of customers globally.