Hynix to Boost Chip Production in China
By Kim Yoo-chul
Staff Reporter
Hynix Semiconductor, the world’s No. 2 manufacturer of dynamic random access memory (DRAM) chips after Samsung Electronics, said Tuesday that it will invest 1.5 to 2 trillion won in its plant in China to boost DRAM production.
``We will invest up to 2 trillion won before the third quarter of this year to boost production of 12-inch (300mm) wafers at our Wuxi factory’s C2 line,’’ Kim Jung-soo, head of the company’s investor relations team, told The Korea Times.
``Through the investment, we will increase the portion of DRAM chips to between 55 percent and 60 percent of the total from China as the monthly output capacity from the line will rise to more than 120,000 from the current some 100,000,’’ Kim added.
Hynix said at its fourth-quarter earnings conference that it will invest 3.6 trillion won this year to upgrade factory facilities and sharpen production of more profitable NAND chips. NAND chips are commonly used in high-end electronics gadgets such as car navigation systems and MP3 players, while DRAMs are used in PCs.
``Other investments will go in the M11 line in Cheongju, North Chungcheong Province, with production set for the second half of this year to speed up the ongoing shift to NAND from DRAM chips as DRAM prices have plunged,’’ Kim said.
Asked about possible controversy over the leak of key technologies to its rivals, Kim ruled this out, saying Hynix has been strengthening overseas ties with its key partners.
The company is set to churn out a maximum of 30,000 DRAMs from the first quarter of this year in Taiwan after the Icheon-based chipmaker set up a strategic partnership with Taiwan-based ProMOS technology, the worlds’ No. 6 DRAM manufacturer, in November last year.
Hynix expects its shipments of DRAM chips to rise 55 to 60 percent this year in line with the market’s growth, while the company also forecasts its global NAND chip shipments grow 120 to 130 percent.
The company suffered a net loss of 465 billion won in the fourth quarter, the first since the fourth quarter of 2003 because its DRAM-focused business strategy virtually failed to overcome the supply glut in the chip industry.
``We will continue to challenge in the first quarter of this year even if weak prices persist,’’ Kwon Oh-chul, its chief of strategic planning office, said.
``We aim to cut costs by 35 percent in our DRAM business and 45 to 50 percent in the NAND business this year as the company moves to advanced chips,’’ he added.