By Kim Yoo-chul
Staff Reporter
Hynix Semiconductor, the world’s second-biggest memory chipmaker, has struck a strategic partnership with its Taipei-based ally ProMOS Technologies.
Hynix said on Thursday that it has agreed with ProMOS to transfer its 50-nanometer level chip processing technology on a contract basis.
The South Korean company plans to buy an 8 to 10 percent stake in ProMOS. Taiwan regulators restrict foreign ownership of more than 10 percent in local chip companies.
``We will find some financial investors to buy the stake through private placement to solidify our current partnership with ProMOS,’’ Hynix spokesman Lee Si-hyun said. Hynix needs some $180 million to buy the stake.
There has been speculation that Japan’s Elpida would strike a partnership with ProMOS as Hynix has been under fire from Samsung Electronics for concerns over a ``technology leak’’ as the 50-nanometer level production technology is owned by South Korean chipmakers.
Under the deal, Hynix expects to reap a combined $500 million in royalties and contract fees over the next three years, while the company could save some 3 trillion won in spending. Since 2003, ProMOS, Taiwan’s No. 3 computer chipmaker, has been producing chips for Hynix with Hynix’ 80-nanometer chip technologies.
Despite growing complaints from Samsung, Hynix has been expanding its foundry (contract) business because the bearish market conditions are forcing the chipmaker to secure more partnerships to save costs.
``Finding strategic partnerships has become a global trend to survive in the highly-volatile memory chip business. By expanding the partnership, we made a solid base to strengthen our price competitiveness,’’ Lee said, adding it is true that some unnamed foreign chipmakers approached ProMOS.
Hynix currently runs a memory chip joint venture with Numonyx in China. It also has flash memory chip alliances with SanDisk of the United States and Japan’s Toshiba.