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Hynix cuts 2008 capex, revives non-memory biz

Posted: 22 Oct 2007 ?? ?Print Version ?Bookmark and Share

Keywords:memory chip market? DRAM? foundry?

Following a mixed Q3 report, Hynix Semiconductor Inc. will reportedly cut its 2008 capital and re-enter the non-memory chip markets.

The Financial Times reported that the South Korean company will reduce its capital spending by 10 percent next year. Hynix also confirmed rumors about re-entering the non-memory sector, but it did not elaborate.

Clearly, Hynix is looking for growth beyond its memory business. Several years ago, Hynix spun out its non-memory unit into a new company called MagnaChip Semiconductor Ltd. The spin-off company supplies CMOS image sensors and provides a foundry business.

Hynix reported Q3 sales of $2.55 billion, up 30 percent compared to the previous quarter and 24 percent compared to the same period last year. Net profits for Q3 totalled $182.9 million, down 56 percent from a year ago. The increase in sales was primarily attributable to the improved pricing environment for both DRAM and NAND flash, the company said.

In addition, the company's ASP for DRAM increased 3 percent q-on-q and achieved 17 percent q-on-q bit growth supported by the strong demand from the PC OEMs.

"For NAND flash, the company achieved 92 percent of bit growth which was driven by the strong demand in the segments of video capable MP3 players and mobile phones that require high density NAND flash," Hynix said. "Nonetheless, such growth in bits was partially offset by 6 percent drop in the average selling price."

- Mark LaPedus
EE Times

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