The world's third largest manufacturer of memory chips is in dire financial straits. The company has fallen prey to a downturn in the memory-chip industry, precipitated by a glut in supply and a drop in demand.
Industry analyst Gartner Dataquest says that 128DRAM memory chip prices have fallen by 89 per cent in 2001 from $18 to $2. Revenue from the industry is anticipated to drop by $18 billion, from $32 to $14 billion.
The Korea Exchange Bank - Hynix's main lender - and its financial adviser Salmon Smith Barney, were last week negotiating a deal to refinance 1.3 trillion won (the South Korean currency) - $1 billion - of Hynix's debts due by the year's end. Hynix has global debts of 2.7 trillion won, to be repaid by the end of 2001 out of a total 7.3 trillion won arrears.