hynix to Establish a Back-End Joint Venture in Wuxi, China

SEOUL, May 18th, 2009

hynix Semiconductor Inc.(‘hynix’ or ‘the Company’, www.hynix.com), today announced that the Company will establish a back-end joint venture in China with Wuxi Industrial Development Group Company 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 US dollors.

By establishing a back-end joint venture, the portion of outsourcing of backend manufacturing will be extended up to 50% from the current of 30%. 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.

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About hynix Semiconductor Inc.

hynix Semiconductor Inc. (HSI) of Icheon, Korea, is the world’s top tier memory semiconductor supplier offering Dynamic Random Access Memory chips (“DRAMs”) , Flash memory chips (“NAND Flash”) and CMOS Image Sensor (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about hynix is available at www.hynix.com.