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Hynix shuts US plant to limit DRAM output

600 workers laid off

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Hynix, the world's third-largest memory maker, will indeed cut back on DRAM production, it admitted yesterday, and will shut down a fab in Oregon for six months to help it weather the poor business conditions in the memory market.

Company sources said earlier this week that the decision to trim production had been made, but that the level of the reduction and where it would be imposed had yet to be settled upon, as we reported yesterday.

Hynix's plant in Eugene, Oregon will bear the burden of the plan, with a six-month shutdown. Six hundred workers will be told to spend more time with their families. The plant currently produces half of Hynix's worldwide 64Mb DRAM output and accounts for 16 per cent of the company's total output.

During the shutdown, the plant will be upgraded to 256Mb production, at a cost of $150 million. ®

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