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The Entire Memory Chip Sector of Hynix Is Likely to Be Sold to U.S.`s Micron

The Entire Memory Chip Sector of Hynix Is Likely to Be Sold to U.S.`s Micron

Posted January. 11, 2002 10:46,   


Hynix Semiconductors, which originally planned to sell out its D RAM sector only, is moving forward to sell out the entire memory sector to the U.S. company Micron.

Consequently, Hynix will end up with a small business with the non-memory sector, which takes part of only 21 percent of the current business, by selling 7-8 FABs of the total 13 production lines.

The special committee for the Hynix restructuring announced yesterday, "The original plan to sell the D RAM memory sector was changed at Micron`s request for the sale of the whole memory sector. The divided sales were practically difficult."

Micron will invest 19.9 percent of its shares in the remaining Hynix departments and sales, and will be provided with 5 percent option, allowing Micron to hold up to 24.9 percent of the Hynix shares.

A related source from the creditors explained, "We will receive Micron stocks as payment of the Hynix memory sector and will pay off the debt with the stocks. However, since the two companies have not agreed on the sales price, additional negotiations are necessary."

Hynix and Micron have completed their third negotiation and plan to conclude the Memorandum of Understanding (MOU) by the 20th after having more discussions for about two weeks.

A special committee member said, "The MOU will include all the agreements in detail so that the final contract will be singed in a short time."

Do-Young Kim sunshade@donga.com · Jeong-Hun Park nirvana1@donga.com