Hynix Wuxi facility rejected

Creditors rejected South Korean semiconductor manufacturer Hynix's plan to build a production facility in China, dealing a blow to the company's attempt to establish a significant presence in the mainland market. The US$1.5 billion production facility, originally planned to be constructed in Wuxi, Jiangsu province, was rejected by a group of creditors including Korea Development Bank, who cited Hynix's limited financial resources and the possibility of another downturn in the global semiconductor market. The Wuxi municipal government pledged to front US$1.2 billion to secure the Hynix assembly plant and was also offering a long-term loan of US$7 billion.