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Hynix will invest in a semiconductor afterprocessing plant

2018-12-20

The semiconductor market is becoming more and more intense, and more manufacturers are setting their eyes on this area.

Hynix Semiconductor said today that it will set up a semiconductor afterprocessing plant in Wuxi, Jiangsu Province, China, in a joint venture with Wuxi Industrial Development Group Co, South Korean media reported.

To boost liquidity and improve its financial structure, Hynix sold its local Chinese plants and some domestic afterprocessing plants to the joint venture for $300 million.

Hynix plans to expand post-processing outsourcing, currently about 30 percent, to 50 percent, and to save more than 2 trillion won, or about $10 billion, in investment costs over the next five years to focus on its core divisions -- basic processing and research and development.

Hynix Semiconductor, which established its manufacturing legal entity in China in 2005, has a full set of production lines from basic processing to post-processing after the establishment of the post-processing plant in Wuxi. Therefore, it is expected to improve its cost competitiveness by saving production and logistics costs.

Hynix Semiconductor has pledged to place orders for post-processing products to the joint venture for the next five years and plans to increase the competitiveness of the joint venture by deploying personnel to operate equipment and conduct training to develop it into a specialized post-processing plant.

The development of semiconductor processing plants will also promote the development of the semiconductor market, and the technological content should also be improved.



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