Feeds

Hynix preps ‘drastic’ solution to its woes

Announcement next week, says restructuring chief

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Hynix will even consider striking a deal with Samsung if its attempt to build an alliance with Micron falls through, the head of the company's Restructuring Committee has said.

Shin Kook-hwan, who chairs the panel formed under Hynix's creditors to oversee the hunt for a solutions to the ailing chip company's financial woes, told Korean TV that the company will announce a "drastic self-rehabilitation package" next week, today's Korea Herald reports.

Curiously, a Hynix Restructuring Committee official, Lee Kwang Seok, said earlier this week that Micron will make some sort of offer for Hynix next week. However, the committee's general secretary, Choi Soo, said later that such a claim was inappropriate and premature, but clearly some short-term announcement is being planned.

Micron's representatives returned to the US a week ago, and the two companies announced they had agreed a framework in which future alliance talks would be conducted.

Shin's comments suggest that the company is worried that Micron will demand too much of Hynix's negotiators. The US company is certainly in a very strong position. Hynix needs a deal far more than it does, but it clearly doesn't want to bend over backwards for Micron in order to strike a deal.

"If Micron demands too much in forming an alliance, Hynix will go its own way since it is capable of staying afloat on its own, which is a view shared by creditors," Shin said. Going its "own way" includes approaching its Korean rival, Samsung, he added.

Shin, who is a former Korean commerce, industry and energy minister, was first to suggest Hynix was looking at alliances with other memory producers and named Micron as a prospective partner long before either company officially announced they had begun exploratory talks. He also said the company might even be shut down if a solution to its problems could not be found.

Shin said attempts to sell off Hynix plant was proving more complicated than originally anticipated, and that the company is looking to seek deals with local technology start-ups. ®

Related Stories

Micron, Hynix deal to be announced next week?
Micron, Hynix to spill beans on alliance by year's end
Micron, Hynix confirm talks
Micron merger hints boost Hynix shares
Hynix creditors consider killing company off

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.