The increasingly fierce semiconductor market, more manufacturers will their eyes on this piece. Hynix Semiconductor said today it will set up a semiconductor afterprocessing plant in Wuxi, Jiangsu Province, China, in a joint venture with Wuxi Industrial Development Group Co LTD, South Korean media reported.

To increase liquidity and improve its financial structure, Hynix sold the local plant in China and some domestic reprocessing plants to the joint venture for $300 million.

Hynix Semiconductor plans to increase the share of post-processing outsourcing from the current 30 percent to 50 percent, and save more than 2 trillion won (about 10 billion yuan) in investment costs over the next five years to focus on basic processing and research and development, its core business.

Hynix Semiconductor, which established a manufacturing office in China in 2005, is expected to improve its cost competitiveness by reducing production and logistics costs as it now has a complete production line from basic processing to post-processing in China after building a post-processing plant in Wuxi.

Hynix promises to supply orders for post-processing products to the joint venture for the next five years, and plans to send personnel to operate equipment and conduct training to develop the joint venture into a specialized post-processing plant in order to improve its competitiveness.

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