Hynix Semiconductor Inc is keeping its options open for its planned strategic alliance, with both Micron Technology and Infineon still in the picture, the country's financial watchdog said yesterday.
The comments came as the ailing memory chip giant again raised its memory chip prices, prompting analysts to see better prospects for Hynix in the months ahead amid increasing demand from personal computer makers.
Lee Keun-young, head of the Financial Supervisory Commission, said both Infineon and Micron remained in contention for an alliance with Hynix.
"We have not yet given Micron Technology exclusive rights for negotiations with Hynix," he said.
Hynix would form an alliance with whichever company offers the best terms, Lee added.
He was speaking as a 15-member delegation from Infineon Technologies AG of Germany reportedly arrived here for talks with Hynix on a possible alliance.
Infineon has proposed a strategic alliance with Hynix in memory chips, backed up by a cross-shareholding of over 20 percent.
A Hynix spokesman declined to comment on Hynix' talks with Infineon. Hynix has been engaged in talks with Micron Technology to create the world's largest memory chipmaker for the past two months. But the deal has been deadlocked over the value of Hynix assets, although reports said the US company had raised its bid for Hynix's core memory chip business from US$3.1 billion to about US$3.8 billion.
The reported rise in Micron's bid came amid signs of a recovery in the semiconductor market.
Analysts said Hynix could achieve an operating profit this month for the first time in many months due to rising memory chip prices. "An operating profit seems possible for Hynix in February as 128M-equivalent DRAM chip prices have been raised to four dollars apiece," said Michael Min, an analyst with Korea Investment Trust Securities.
The recent series of price hikes have improved Hynix's cash flow since late December, enabling the chipmaker to finance its key project to upgrade production facilities.
"Hynix's memory-chip business is projected to make an operating profit of 90 billion won (US$68.4 million) in the first quarter," Min said.
But he stressed the operating profit would not be enough to cover interest payments for the heavily indebted Hynix.
There appears further room for additional hikes in DRAM chip contract prices, he said.
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