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Thursday, July 24, 2008
Hynix to Close US Chip Plant

Hynix Semiconductor Inc., the world's second-largest memory chip manufacturer, said Thursday it will close its only U.S. factory amid changes in production standards and steep price declines buffeting the industry.

Hynix said in a statement that production at the facility in Eugene, Oregon, would cease by the end of September.

"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," the company said in a statement.

As part of the deliberations that led to this shutdown, Hynix 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.

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