Feeds

Hynix warns it may cut chip production

That'll bump up memory prices

  • alert
  • submit to reddit

Korean chipmaker Hynix Semiconductor has warned that the current downturn in the IT industry may force it to reduce manufacturing.

"As the situation is bad we could consider (cutting production)", a Hynix spokeswoman told Bloomberg. "We understand other companies are also considering cuts," she added.

Korean semiconductor makers, which account for around 40 per cent of world chip production, last reduced production in 1998, when they closed their factories for two weeks. As a result, supply stopped outstripping demand and prices increased.

Bloomberg reports that every time chipmakers have cut production it has resulted in sharp price rises for memory chips.

Hynix rivals Samsung Electronics and Micron Technology said they did not plan to chop manufacturing.

Meanwhile, IDC expects chip sales to fall by more than 40 per cent in 2001.

Last month Hynix announced it would convert two of its SDRAM production lines in Inchon, South Korea, to make DDR chips. The company, which is also trying to separate itself from parent company Hyundai, said it aimed to grab half of the DDR SDRAM market by the end of the year. ®

Related Link

Hynix May Trim Chip Production as Prices Tumble

Related Stories

DDR won't dominate until 2003 - Infineon
Hynix profits plummet

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.