Feeds

Hynix will get no help from Korean govt – Deputy PM

You're on your own now

  • alert
  • submit to reddit

The Korean government intends to leave Hynix to its own devices and will not interfere with the troubled memory maker, the country's Deputy Prime Minister and Minister of Finance and Economy, Jin Nyum, said this past weekend.

"Hynix Semiconductor was separated from Hyundai Group, and is not mixed with Hyundai units, meaning the company will stand up to any market decision," he said during a TV interview.

Korean businesses have often been helped by interventionist governments in the past, motivated by a desire to sustain the nation's economy. Hynix, with a proportion of its stock held by overseas investors, can clearly expect no such aid from the Korean government, according to Jin's comments.

Hynix has been struggling of late, having been hit very hard by the decline in global semiconductor sales - and the collapse of memory prices in particular. It also carries a massive debt, to the tune of 5.7 trillion won ($4.43 billion) around its neck. While the company is profitable - just - its earnings are being turned to losses by that debt - an effect the company is feeling all the more keenly because of the year's shrinking sales. Last quarter, Hynix's revenues were down 20 per cent.

The company is selling off or spinning off non-core operations in a bid to streamline its business and - again - reduce its debt. ®

Related Stories

Hynix shuts US plant to limit DRAM output
Hynix nixes stake sell story
Hynix profits plummet
Hynix nixes non-core operations

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.