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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (58807)	1/15/2002 4:04:59 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

01/15 00:22 Rising Chip Prices May Hamper Micron's Hynix Purchase (Update1) By Ian King and Heejin Koo quote.bloomberg.com Seoul, Jan. 15 (Bloomberg) -- Hynix Semiconductor Inc. creditors may delay negotiations to sell the company to Micron Technology Inc., hoping a rebound in memory-chip prices will allow the Korean company to survive alone, investors said. Since No. 2 chipmaker Micron and No. 3 rival Hynix announced Dec. 2 they were in talks, the spot price of the industry- standard 128 megabit dynamic random access memory chip surged 140 percent to $3.52, the first time since last May that it was more than the estimated cost of production. ``Rising DRAM prices are working against Micron,'' said Kim Young Gil, who helps manage 3 trillion won ($2.3 billion) in equities at Daehan Investment Trust Management Co. in Seoul. ``It would have to offer more for a possible takeover than when the talks initially began.'' The low price of chips was key to bringing the two together. For Micron, acquiring Hynix's facilities was a chance to lock up more than 40 percent of the market and control the fluctuations in demand and supply that led to wide price swings. For Hynix, a sale to Micron was a chance to escape financial problems that forced it to seek two multibillion-dollar bailouts last year. Even with those rescues, some analysts forecast the company will run out of cash in the second quarter.