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Hynix hits bottom

12 January 2009 | By Mark Osborne | Editor's Blog

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Hynix’s CEO Kim Jong-kap has claimed that the bottom of the current crisis in the memory industry ‘may’ have been in the fourth quarter of 2008. His rationale was that the drastic cut in capital spending across the industry, including that of Hynix, mean that 2010 should see a recovery.

Although such comments would seem to reflect those of iSuppli from last week about revenue growth in DRAM recovering in 2010, Hynix has a full year to get through before things really improve. Calling 4Q08 the bottom seems premature, especially when the peak selling is at least six months away and the first quarter is the worst. It is also highly unlikely that Hynix will return to profitability in 2009.

I don’t hold much by what DRAM executives say as they all have themselves to blame for the crisis in the memory markets. Perhaps Jong-kap was so pleased to have secured around US$600 million to keep the boat afloat for the time being, he got a little carried away with himself to reporters.

Related articles

Hynix cuts capital spending by $1 billion - 27 March 2008

Numonyx increases stake in Wuxi JV fab with Hynix - 25 September 2008

Hynix to receive US$960 million in new funding - 22 April 2009

Hynix raises US$300 million in IC packaging outsourcing deal - 18 May 2009

Hynix makes significant cuts in DRAM and NAND flash production - 18 September 2008

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