Hynix (formerly Hyundai) mulls cut in DRAM production
By Jack Robertson
EBN
(03/09/01 13:35 p.m. PST)
WASHINGTON -- Hynix Semiconductor, formerly Hyundai Electronics Industries Co., is considering whether to cut back production of DRAMs at its fabs, but has made no decision yet, according to Fahard Tabrizi, vice president of worldwide memory marketing.
Hynix claims it is the largest global DRAM producer by unit volume. The firm didn't break out its DRAM output separately, but said for all semiconductor products it has 360,000 eight-inch equivalent wafer starts per month.
Tabrizi denied Asian press reports that the Korean chip maker might shut down one or two of its fabs. "We're definitely not closing any fab, but we are considering reducing the DRAM output at some of our fabs," said the vice president at Hynix, which this week became the new name of Hyundai Electronics.
If a cutback is made, it would be the first by the industry's Big Five DRAM producers. Samsung, Micron, and Elpida Memory officials as late as two weeks ago said they had no plans to cut output, despite crashing prices in the DRAM market. (Infineon Technologies in Germany also has not yet announced cutbacks.)
These large DRAM suppliers were expecting demand to pick up again after OEM customers had worked off excess memory chip inventories.
Indeed, a Merrill Lynch report Friday indicated some OEMs were starting to place new DRAM orders this week.
All DRAM producers have been hit hard financially by the rock-bottom DRAM prices that are considered to be right at the cost of production or even losing money. Hynix (Hyundai) is also caught in a cash crunch and this week missed a $52 million payment due on debt for its fab in Eugene, Ore., although extra bank credit then allowed the firm to make the payment.
Even if Hynix reduced its DRAM output, market analysts said any impact on DRAM prices would depend on how large the production cuts were and whether any of the other memory chip makers cut back their output. When the Korean chip firms three years ago cut their DRAM output in a similar market glut, Micron Technology only ramped up its own production to grab more market share. |
