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Hynix expects Micron alliance decision this month

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CIOL Bureau
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SEOUL: South Korea's Hynix Semiconductor said on Wednesday it will conclude

alliance talks with US rival Micron Technology in January, amid hopes for a deal

to reduce a global glut in memory chips.

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"We have been engaged in talks (with Micron) for segregation and

strategic investment in the memory and non-memory chip businesses," Hynix

President Park Chong-sup said in an e-mail to employees, which the company

released to the media. "We'll decide whether to sign an agreement in

January."

Cash-strapped Hynix may sell operations making the most common types of

dynamic random access memory (DRAM) chips to Micron, a company official said

last Friday. Micron and Hynix rank second and third in the computer memory

sector, and an alliance could re-shape the industry as their combined output

capacity exceeds leader Samsung Electronics Co.

The Chosun Ilbo newspaper on Friday, citing a Hynix source, said if Hynix

sold DRAM facilities, in return it would expect a stake in Micron, as well as

cash or an equity investment from the US company. Hynix has been saved from

collapse by creditors twice this year and is seeking to sell chip plants and

other assets to raise more funds.

(C) Reuters Limited.

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