hynix Semiconductor Inc. Completed Construction of 300mm Fabrication Plant of 3rd Factory in Cheongju

Cheongju, Korea — August 28th, 2008

hynix Semiconductor Inc. (“hynix”, “the Company”, www.hynix.com) announced the completion of the 3rd Factory of Cheongju (“the Factory”) located in Cheongju, Korea on Thursday in ceremony with attendants of government officials and related parties.

The 3rd Factory of Cheongju has 300mm wafer fabrication facilities in its two-story structure. With construction breaking ground in April 2007, the Factory is built on the total site of 108,697 square meters including 294,637 square meters building and area. It is located close to where the Company currently operates manufacturing facilities and in this regard, the Factory will have a great advantage to utilize workforce of other plants in Cheongju and infrastructure.

The M11 fabrication plant (“the FAB”) of the 3rd Factory is scheduled to begin production of approximately 40,000 wafers per month from upcoming September and it will exclusively fabricate the most advanced high-density NAND Flash products including 16Gb, 32Gb Flash memory using 40nm level process technology. The capacity of the FAB will be flexibly increased in accordance with the market situation. By completing the 3rd Factory, roughly up to the capacity of 200,000 wafers per month will be added to the total of the Company’s 300mm capacity.

“hynix plans to develop Cheongju site as the number one NAND Flash manufacturing facilities in the world starting from this completion of the 3rd Factory construction. Though recovery of the semiconductor industry has been in delay, we will continuously secure competitiveness and growth engine for sustainable growth with our leading-edge technologies and active strategic alliances.” said Mr. Jong-kap Kim, Chairman and CEO of hynix.

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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”) and Flash memory chips to a wide range of established international customers. The Company’s shares are traded on the Korea Stock Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about hynix is available at www.hynix.com