Hynix outlays vision for the future

Hynix Semiconductor rolled out a mid- to long-term vision yesterday. It wants to almost double sales and build three more production lines in the next three years.
Kim Jong-kap, chief executive of Hynix, presented the company’s plans at a workshop, the company said in a statement.
“Our financial difficulties [in the past] have made our preparations for the future slightly insufficient, but now we will go forth with aggressive investment in research and development and new businesses,” Kim said. These plans include achieving sales of $18 billion by 2010 and becoming one of the top three semiconductor firms with a revenue goal of $25 billion by 2012. Hynix is currently the fifth-largest semiconductor company in the world and the second-largest in the memory chip sector as of the first quarter of this year. Intel Corp. is the largest chipmaker in the world.
The company will also build one 300 millimeter (12-inch) chip manufacturing line from 2008 to 2010; it currently has two lines. Expanding the 300 millimeter line will increase production. Currently, most Hynix chips are produced on 200 millimeter lines, which have lower yields compared to those using 300 millimeter silicon wafers. Hynix hopes that by 2012, the current 40 percent of 300 millimeter lines will grow to 90 percent (in comparison to total production facilities).
Hynix will also raise its investment in research and development to 10 percent of total revenue, and increase its research workforce from 2,000 to 5,000 employees.
To focus on high-value-added products, the company plans to begin new businesses in 2012, beginning with the phase-change memory market in 2009. It will also strengthen cooperation and alliances with other companies in joint developments, cross-licensing, and stake participation. Shares of Hynix dropped 1.8 percent to 38,300 won ($41.90) yesterday.

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