“If Not Micron, It’s Infineon” , Hynix Seeks D-Ram Affiliation

Hynix Semiconductor is promoting affiliation with Germany’s Infineon, in case of failure in negotiations with U.S.A.’s Micron Technology.

Hynix’s special restructure committee, which was originally planned on the 31st, has also been postponed indefinitely. There was no explanation for the delay.

However, Hynix-Micron negotiations have made some progress. The two companies’ proposed transaction price narrowed down to 400 million dollars from the original 1.7 billion dollars. The negotiation is expected to conclude as early as the coming weekend.

The Nature of Cooperation With Infineon -

Quoting CEO Ulrich Schumacher, who is currently visiting Japan, Japan’s Nihon Keizai Shimbun reported on the 31st, "Infineon is holding negotiations with Hynix for cooperation in management in the D-Ram department." Schumacher revealed, "Various coalition models are being talked about, and the focus will mainly be on production development and manufacturing."

The Ongoing Negotiations With Micron -

Hynix and Micron are in their last phase of price negotiations. Micron increased its proposal price from 3.1 billion dollars to 3.6 billion dollars, and creditors lowered theirs from 4.7 billion dollars to 4 billion dollars. However, a gap of 4 billion dollar still remains.

Authorities conveyed the creditors` mood by saying, "It is true that we have internal disagreements, but it looks like the worst has passed."

The decision whether or not Micron will accept the creditors’ proposed price will be concluded when CEO Steve Appleton presides over an analysts meeting on the 1st (the U.S. time).

Young-Hae Choi yhchoi65@donga.com · Jeong-Hun Park sunshade@donga.com