Global Sources
EE Times-India
Stay in touch with EE Times India
EE Times-India > Memory/Storage

Report: Creditors plan to sell Hynix stake

Posted: 01 Oct 2008     Print Version  Bookmark and Share

Keywords:chip maker  memory downturn  flash supplier  fab 

The Korea Exchange Bank (KEB), the single largest shareholder of Hynix Semiconductor Inc., plans to sell its combined 36 per cent stake that it holds with eight other companies in the chip maker, according to Reuters.

The stake is worth Rs.11,612.86 crore ($2.7 billion), according to the report. It's unclear who will buy that stake. If or when the sale goes through, a potential buyer could gain control over Hynix.

According to the reports, KEB owns about 8.2 per cent of Hynix. Other shareholders include the Korea Development Bank, Woori Bank, Shinhan Bank and Kookmin Bank.

Hynix has been hit hard by the memory downturn. Losses are mounting for the Korean DRAM and NAND flash supplier.

Hynix is also seeking to generate cash amid losses. Hit by the memory downturn, Hynix recently reported revenues of Rs.7,827.93 crore (1.86 trillion won) for the quarter, up 16 per cent from the previous quarter. Net loss for the quarter amounted to Rs.2,935.01 crore (711 billion won). This compares a net profit of Rs.881.33 crore (213.5 billion won) a year earlier. Hynix posted a loss of Rs.2,786.40 crore (675 billion won) in the first quarter.

Meanwhile, Hynix also plans to shut down some fab to help its bottom line. It recently announced plans to accelerate the retirement of its 200mm fabs, reducing overall manufacturing capacity by 30 per cent.

But amid large losses and a memory downturn, Hynix has also recently announced the grand opening of its new, 300mm NAND fab in Korea, with initial production slated for September.

Seeking to generate cash, loss-ridden Hynix recently said it plans to sell a small stake in its Chinese joint fab venture to Numonyx B.V. for Rs.430.11 crore ($100 million), according to reports.

- Mark LaPedus
EE Times

Comment on "Report: Creditors plan to sell Hynix..."
*  You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.


Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

Back to Top