The stock price of Hynix Semiconductor Inc, the world's second largest DRAM manufacturer, has been rising dramatically since news that it may sell its 200mm wafer production line to Taiwan Semiconductor Manufacturing Company Limited was released.

According CLSA Asia-Pacific Markets, TSMC and Hynix are in talks on the transaction, for which if a deal is reached, will bring positive influence to both parties. The spokesperson of Hynix said that they have several potential buyers, but they not made a final decision on which one to sell the asset.

Since the beginning of this year, the price of some key chips has declined by more than 70%. In order to increase its economic results, Hynix faces problems of transforming the old 200mm wafter production line to 300mm one, which will lower costs.