– hynix to be specialized in memory business
– hynix’s non-memory operation will be named MagnaChip Semiconductor
Seoul, Korea, October 6, 2004
hynix Semiconductor Inc., (www.hynix.com) announced today it has completed the sale of its non-memory semiconductor operations to Citigroup Venture Capital for KRW 954.3 billion.
The non-memory division starts its business as MagnaChip Semiconductor (www.MagnaChip.com) which is established by Citigroup Venture Capital (CVC) Equity Partners, L.P., CVC Asia Pacific Ltd. Citigroup Venture Capital, and Francisco Partners. Through the sale, hynix’s financial structure is expected to improve as its debt-to-equity ratio will be reduced down to approximately 80% from 110% level as of the end of June.
hynix Semiconductor has been successfully restructuring its business through continued asset sales and spin-offs since 1997. hynix further aims to focus on its core memory business, which includes DRAM, Flash memory and Pseudo SRAM products, and further extend its leading position in the semiconductor market. With projected sales of US$1 billion for the full year 2004, the newly founded MagnaChip Semiconductor is expected to strategically concentrate on value added products such as CIS (CMOS Image Sensor), DDI (Display Driver IC), and ASP (Application Solution Processor), and maximize its profitability in the foundry market by focusing its resources on its competitive technology such as high voltage process technology.
