The Hynix computer chip plant in Eugene likely will be sold for a fraction of what it cost to build.
South Korea-based Uni-Chem is seeking to buy the idled industrial plant for US$50 million — far below the US$252 million Hynix spent to buy the land and build the factory shell a decade ago.
Hynix, also based in South Korea, ceased operations in Eugene about a year ago, putting 1,000 employees and 300 contract workers out of a job.
The size of the proposed discount isn’t a surprise to real estate and economic development experts, who say it’s often difficult to sell a large industrial plant built for a specific user and purpose.
“These are special-purpose, almost single-use properties, and when they sell for alternate uses, they take a substantial economic hit,” said John Brown, a commercial real estate appraiser in Eugene. “Even in a good market, [the buildings] take a pretty good hit.”
Brown said the US$50 million sale price being discussed for the 0.11 million square meter plant and 81 hectare site “appears to be in line with” the prices of other vacated industrial plants in the Eugene-Springfield area.
Officials with Uni-Chem, a leather fabricator seeking to jump into US solar manufacturing, say they expect to close on the Hynix purchase soon.
A Uni-Chem spokesman said the company looked at 20 US sites before deciding to target the Hynix property. Hynix officials say talks are continuing.
Hynix spent US$1.4 billion on its Eugene plant and equipment initially, with only about a fifth of that for the land and buildings. In the decade it operated here, it retooled several times, spending hundreds of millions on new equipment. Hynix continues to incur costs, such as taxes, maintenance and insurance, on the mothballed facility.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
BULLY TACTICS: Beijing has continued its incursions into Taiwan’s airspace even as Xi Jinping talked about Taiwan being part of the Chinese family and nation China should stop its coercion of Taiwan and respect mainstream public opinion in Taiwan about sovereignty if its expression of goodwill is genuine, the Ministry of Foreign Affairs (MOFA) said yesterday. Ministry spokesman Jeff Liu (劉永健) made the comment in response to media queries about a meeting between former president Ma Ying-jeou (馬英九) and Chinese President Xi Jinping (習近平) the previous day. Ma voiced support for the so-called “1992 consensus,” while Xi said that although the two sides of the Taiwan Strait have “different systems,” this does not change the fact that they are “part of the same country,” and that “external
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source