The intensifying competition in the semiconductor market has led more manufacturers to turn their attention to this sector. According to reports from South Korean media, SK Hynix announced today that it will establish a joint venture with Wuxi Industrial Development Group Co., Ltd. in Wuxi, Jiangsu Province, China, to build a semiconductor back-end processing plant. 
　　To enhance liquidity and improve its financial structure, SK Hynix has sold its local factory in China and some domestic back-end processing plants to the joint venture for $300 million (approximately 2.04 billion RMB). 
　　SK Hynix plans to expand the proportion of outsourced back-end processing from the current 30% to 50%, and aims to save over 2 trillion Korean won (approximately 10 billion RMB) in investment costs over the next five years, focusing its core resources on front-end processing and R&D. 
　　Since establishing a manufacturing entity in China in 2005, SK Hynix, after building the back-end processing plant in Wuxi, now possesses a full production line from front-end to back-end processing in China. This is expected to enhance cost competitiveness by reducing production and logistics expenses. 
　　SK Hynix has committed to providing orders for back-end processing products to the joint venture for the next five years, and plans to improve the joint venture's competitiveness by deploying specialized personnel to operate equipment and conduct training, aiming to develop it into a dedicated back-end processing plant. 
    The development of semiconductor processing plants will further drive the growth of the semiconductor market, while also requiring an enhancement in technological sophistication.