The Korean firm Hynix Semiconductor has completed the sale of its non-memory semiconductor operations to Citigroup Venture Capital for $828 million.
The non-memory division starts its new life as MagnaChip Semiconductor, established by Citigroup Venture Capital (CVC) Equity Partners, CVC Asia Pacific, Citigroup Venture Capital, and Francisco Partners.
Through the sale, Hynix’s financial structure is expected to improve as its debt-to-equity ratio will be reduced down to approximately 80% from 110% level as of the end of June.
Hynix Semiconductor has been restructuring its business through continued asset sales and spin-offs since 1997 as it concentrates on its core memory business, which includes DRAM, Flash memory and Pseudo SRAM products.
With projected sales of $1 billion for the full year 2004, MagnaChip Semiconductor is expected to concentrate on CIS (CMOS Image Sensor), DDI (Display Driver IC), and ASPs (Application Specific Processors).
It has five wafer fabs located in Korea, with current manufacturing capacity of approximately 110,000 8 inch equivalent wafers per month. The company has 4,200 employees, including 650 research and development staff.