Restructuring / Turnaround Strategies Case Study

Hynix: The South Korean Chipmaker's Restructuring Strategies

Abstract:
South Korean chipmaker, Hynix, was severely hit by the downturn in the country's semiconductor market with a debt of six billion won in 2002. However, Hynix managed to extricate itself from its financial troubles and restated profits in the third quarter of 2003. Despite profits, Hynix was accused of various allegations by competitors as they considered the bank bailouts being provided to the company as an unfair government subsidy.

Pedagogical Objectives:

• To discuss the restructuring strategies adopted by the company and the challenges being faced by it in the competitive market for semiconductors.

Keywords : Hynix; Hyundai Electronics Industries; South Korea DRAM (Dynamic Random Access Memory) market; Restructuring / Turnaround Strategies Case Study; Hynix bailout packages; LG Semicon; Hynix restructuring plan; Export duties on Hynix DRAM; World DRAM market; Hynix blue chip technology