Hynix Sells China JV Stake to Numonyx
South Korea-based Hynix Semiconductor has sold a 10% stake in its Chinese Wuxi joint venture for $100m to Switzerland-based Numonyx.
The Chinese joint venture produces dynamic random access memory chips for personal computers. The company decided to sell the stake after posting continuous loses in recent quarters. In the last two quarters, it posted net loss of W711 billion ($697.5m) and W675 billion ($677.4m) respectively.
The company also plans to close some of its fabs to improve profitability. Recently, it announced plans to accelerate the retirement of its 200mm fabs, reducing overall manufacturing capacity by 30%.
Numonyx is a memory joint venture of Switzerland-based STMicroelectronics, US-based Intel and Francisco Partners.
The transaction is expected to be completed by the end of the year.