Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (65611)	2/8/2001 3:54:20 PM
From: Don Green	Respond to of 93625

Hyundai losses reach $1.9 billion in 2000 By Semiconductor Business News Feb 7, 2001 (2:25 PM) URL: semibiznews.com SEOUL -- Falling memory prices pushed Hyundai Electronics Industries Co. Ltd. deep into a fiscal hole last year. The world's No. 2 DRAM supplier today posted a 2.4 trillion won ($1.9 billion) net loss despite a 48% increase in sales during 2000, reported the Reuters news service. Hyundai and other major DRAM merchants are getting pounded by a relentless drop in average selling prices, which began last September. The DRAM slump is being caused by slower-than-expected PC sales and the lack of new end-user applications and system software that requires more main memory. Last week, Germany's Infineon Technologies AG said it expected a loss in the first quarter, if average 64-Mbit DRAM prices sank to $3 from $4 in Q4 of 2000 (see Feb. 2 story). Hyundai is attempting to reduce its dependency on DRAM sales by shifting some memory plants to logic foundry services and loading up wafer fabs with flash memory devices. On Tuesday, Hyundai officials in San Jose said the Korean chip maker aimed to continue strong flash sales growth after driving up revenues in the segment to $111 million in 2000 from $4 million in 1999 (see Feb. 6 story). But the struggling South Korean chip maker faces a huge task in easing its dependency on DRAMs. Company officials estimated that 80% of Hyundai Electronics' chip revenues came from DRAMs in 2000. Reuters today reported that Hyundai is now forecasting that 2001 sales will exceed 10 trillion won, up from 8.9 trillion won in 2000. Faced with mountains of debt--more than $4.2 billion by some accounts--Hyundai Electronics has begun to sell billions of dollars in corporate bonds to the Korean government to ease its cash flow. That move has triggered strong protests from U.S.-based Micron Technology Inc., which is competing with Hyundai and rival Samsung Electronics in Korea for top spot in DRAM (see Jan. 7 story). Analysts following Hyundai expect the losses to continue in 2001. Analyst Han Soong-ho told Reuters that he expects the Korean chip maker to record 500 billion won in losses this year on sales of 8 trillion won as DRAM prices continue to fall until the second quarter.