By Kim Yoo-chul
Staff Reporter
Hynix Semiconductor, the world’s third-largest NAND supplier, is likely to sell off its 200mm chip production equipment from its M8 and M9 lines at a plant in Cheong-ju, North Chungcheong Province, by the end of the year in a bid to strengthen its 300mm DRAM business.
``We are planning to sell 200mm M8 and M9 lines within this year to increase productivity, ‘’ a high-ranking Hynix official told The Korea Times on the condition of anonymity, citing the sensitivity of the issue.
``Also Hynix will invest some 12.5 trillion won by the end of 2010 for the construction of three or four 300mm DRAM plants,’’ the official added.
Asked whether TSMC, a Taiwanese Foundry manufacturer, could be a possible buyer of the M8 and M9 lines, the official said this was a possibility.
``Nothing has been decided yet. But we are not ruling this out,’’ said the official who is familiar with the situation.
Industry sources said TSMC is in intensive talks with Hynix over the purchase of the equipment for around $500 million to $550 million.
The monthly production of the M8 and M9 lines is 300,000 in wafer injection standards and the facilities are estimated to be worth 1.5 trillion and 2 trillion. Industry sources said a partial sale of the lines is more probable because of the cost burden.
Another official said the company will not sell its other 200mm DRAM plant equipment on the M7 production line at Icheon, south of Seoul. Instead the line will get constant investment for the firm’s entry into the non-memory semiconductor business.
``Whether the city of Cheong-ju will become the first venue for the company’s new business will be decided by the end of the year,’’ the official added.
In July, Hynix CEO Kim Jong-gab said the company was ready to enter the non-memory semiconductor business as the sector will pave the way for the firm to capture a 30 percent market share in DRAM, NAND flash and PRAM chips, respectively, by 2012.
In 2004, Hynix separated from its non-memory business, which became MagnaChip Semiconductor. Officials say the detailed plans on the new business, including the repurchase of MagnaChip, will be unveiled after October 3.