Hynix Semiconductor, Inc. announces closure of Eugene fabrication plant
Eugene, Ore. — July 23, 2008 — Because of short- and long-term market conditions, which include a steep reduction in the price of memory chips worldwide and accelerated technological migration towards next-generation production standards, Hynix Semiconductor, Inc. has decided to close its Eugene fabrication facility.
“Our fabrication facility in Eugene, which was originally designed to produce eight inch wafer memory chip, can no longer remain competitive in an environment where the industry standard is migrating toward a 12 inch wafer chip,” said DongGyun Kim, Hynix Semiconductor Manufacturing America (“HSMA”)’s President and CEO. “As a result, products manufactured by eight inch wafer facilities — like our facility in Eugene — are currently causing Hynix serious losses, which hinder our ability to remain competitive in the ever-evolving worldwide memory industry. We are grateful for the support we’ve received over the years from the Eugene community and regret the need to close our facility.”
As part of the deliberations that led to this shutdown, Hynix Semiconductor Inc., the parent company of HSMA, is seriously considering options to utilize its Eugene facilities after the closure. Options include pursuing a similar business to the current semiconductor operation; selling the equipment, building and land as a package to a third-party semiconductor manufacturer; and selling the building and land separately from the equipment which will be relocated. As soon as decisions are finalized, the company will communicate plans to the Eugene community and Oregon government leaders.
About Hynix Semiconductor Inc.
Hynix Semiconductor Inc. (HSI) of Icheon, Korea, is a top tier memory semiconductor supplier offering Dynamic Random Access Memory chips (“DRAMs”) and Flash memory chips to a wide range of established international customers. The Company’s shares are traded on the Korea Stock Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about Hynix is available at www.hynix.com.