Some of Hynix`s Production Lines to Be Sold to Other Domestic Firms

Some of Hynix Semiconductor`s production lines seem to be sold to a consortium consisting of domestic firms that produce application-specific integrated circuits (ASIC).

This consortium, led by Ararion whose CEO is concurrently the chairperson of ASIC Design-Company Association (ADA), is to consist of seven or eight ASIC companies, including EMDT, ECT and INC, and will emerge officially late this month as a form of corporation.

The consortium said, ``We are stepping up a plan to purchase two non-memory FAB`s of Hynix Kumi Plant for 250~400 billon won to provide ASIC companies with equipments that can help them produce non-memory chips steadily, and the negotiation with Hynix is coming to its conclusion.``

Since Kumi FAB`s circuit cables are older than other FAB`s, Hynix can reduce a burden following the dispose of the equipment and obtain the effects of restructuring and cash-inflow. Especially, if some of Hynix`s production equipments are sold to the consortium, its effect is expected to reach the negotiations for selling production equipments with China, which is progress.

Regarding this, Hynix`s Vice President Jeon In-Baek said on Oct. 2, ``The company has been in negotiations with domestic companies, but nothing concrete has been determined yet.``

A person concerned with the consortium said, ``Taiwanese semiconductor companies seeking stable suppliers and U.S. organizations seeking investment profits are stepping up actively.`` Thus, it is our plan to hold an explanatory session for investment targeting them early next month in America and raise some 300 billion won.

sunshade@donga.com