2011 will be a watershed for Hynix
The odds are in favor but bumpy road ahead By Kim Jae-kyoung In 2008, global memory chip manufacturers, including Hynix Semiconductor, were deeply involved in a game of chicken to squeeze out their competitors, which then yielded no winner in the cutthroat competition. Amid the global economic slump, companies overproduced chips in an effort to win market share. But the over production backfired and only added to the deepening recession of the semiconductor market. However, Hynix, the world’s No. 2 computer memory chipmaker, has emerged as the winner from the high-stakes chicken game by showing the best business performance last year through the bold investment and timely balance sheet restructuring. It posted an operating profit of 3.27 trillion won in 2010, the largest amount in its history, on sales of 12.09 trillion won. Its net profit also reached a record high of 2.65 trillion won. This is in a sharp contrast to the firm suffering net losses of 4.74 trillion won in 2008 and 333 billion won in 2009. With the robust performance, it also shored up its financial s
