Hynix Semiconductor announced it has signed a business transfer agreement of its system IC division with System Semiconductor Ltd. The company’s board has approved the sale of the system IC division earlier this month.

System Semiconductor is a newly founded Korea-based corporation by Citigroup Venture Capital Equity Partners, L.P. and CVC Asia Pacific Ltd..

The sale of Hynix’s system IC division will be completed after going through necessary procedures such as extraordinary shareholders’ meeting. Once completed, the new company is expected to be developed and grow as a company that specializes in system IC business.

With the sale, which was one of the options to restructure the Company in the “Business Normalization Plan of Hynix” that was agreed with the creditor council at the end of 2002, Hynix will be able to focus its resources on memory business. In addition, with the proceeds generated from the sale, Hynix’s financial structure is expected to improve which will contribute significantly to the company’s early normalization.

As a part of its “Normalization Plan” Hynix sold out a number of other businesses, including LCD business earlier.

On the other hand, Hynix will pursue China project and seek opportunities for strategic alliances to further strengthen the company’s long-term competitiveness and extend its leading position in the memory market.