Hynix excludes copper from new factory plan

Kim Jong-kap

To avoid controversy regarding environmental harm, Hynix Semiconductor Co. revised its plans for factory expansion in Icheon, Gyeonggi province.
At a press conference yesterday in central Seoul, newly appointed Chief executive Kim Jong-kap said the company plans to split up its chip production process.
“We don’t want to miss a timely investment, so we will first build chip assembly lines in Icheon excluding the copper-use process,” Kim said.
The usage of copper was the main reason the government rejected the original plan, because environmental groups said it would contaminate the local water table. The company was told to build a plant further south, in Cheongju, North Chungcheong province, instead.
“The government said it would revise restrictions regarding water sources, but it would take too long for that to happen,” Kim said. “The company sympathizes with the importance of the environment, and plans to introduce a system with restrictions stronger than government standards in regard to managing toxic materials,” he added.
Hynix is still undecided whether it will build on idle land next to its existing plants, or buy a new plot.
Kim also said that the company’s profit structure is too simple and that he will review plans to enter other areas such as non-memory chips. “We’re investing 4.5 trillion won ($4.8 billion) each year for four years to expand our production lines, so we don’t have many reserves for other businesses, but we are looking at different scenarios,” Kim said.
Regarding the sales of shares held by Hynix’s former creditors, Kim said that shareholders are making an effort to seek a new owner.
“But I don’t think it will be easy for a single company to take over a firm that has over 15 trillion won in aggregate stock value,” he said. ‘There is also a law that prevents key technology leaks, so foreign investors cannot become strategic partners.”
Kim was elected the chipmaker’s new chairman and chief executive last month.

By Wohn Dong-hee Staff Writer [wohn@joongang.co.kr]