Korean Hynix announced on May 19 that the company will sign a cooperation agreement with Wuxi Industry Development Group through Hynix-Numonyx Semiconductor, a joint venture between STMicroelectronics and Hynix, the China Business News reported on May 17. Pursuant to the agreement, Hynix and Wuxi Industry Development Group will each invest 1.2 billion RMB (US$175.8 million; US$1= 6.8 RMB) to jointly establish a 12-inch IC packaging and test facility in Wuxi, China, and Hynix will sell its chip production line to the latter for US$300 million. At present, Hynix has one 8-inch plant and one 12-inch plant in Wuxi, with a combined monthly capacity of over 200,000 wafers, according to SinoCast China Business Daily News on May 19.