Hyundai wins $30 in chip panel deals<\/p>\n
SEOUL (AfP): South Korea's leading chip maker Hyundai
\nElectronics Industries Co. Ltd., said Monday that it had secured
\nabout US$30 billion in overseas orders for microchips and flat
\npanel displays.<\/p>\n
Hyundai said in a statement it would export Dynamic Random
\nAccess Memory (DRAM) chips worth $22 billion to four major
\ninternational firms in deals spread over the next five years.<\/p>\n
The four firms include such giants as International Businesss
\nMachines Corp. (IBM), Compaq Computer Corp. and Gateway Inc., it
\nsaid.<\/p>\n
\"The fourth DRAM chip importer asked us not to reveal its
\nname,\" a Hyundai spokesman told AFP.<\/p>\n
The company also said it had recently secured deals to supply
\nThin Film Transistor-Liquid Crystal Display (TFT-LCD) units worth
\neight billion dollars to four other foreign firms over five years
\nfrom 2000.<\/p>\n
Hyundai is also negotiating similar deals for DRAM exports
\nworth $15 billion to other firms, he said, but declined to reveal
\ntheir names.<\/p>\n
Kim Yong-Hwan, president of Hyundai Electronics, told
\nreporters the deals were in their final stages and that he
\nexpected them to be finalized by early December.<\/p>\n
He added that the amount of DRAM chips to be exported in the
\nnew deals far exceeded the previous combined exports of Hyundai
\nElectronics and LG Semicon Co., which merged earlier this year.<\/p>\n
\"The five-year DRAM export contracts mean a lot (to Hyundai
\nElectronics) in that the big chip importers see prospects for the
\nintegrated electronics firm as very bright,\" Kim said.<\/p>\n
Hyundai Electronics said it had a 20.8 percent stake in the
\nglobal market as of the end of last year. It says it is the
\nnation's number one DRAM maker in terms of chip-production
\ncapacity.<\/p>\n
Hyundai plans to expand its annual TFT-LCD production
\ncapability from 500,000 units to 1.8 million units in 2000, and
\nthree million units in 2001, the statement said.<\/p>\n
The firm posted a net loss of 125 billion won ($104 million)
\nfor the six months to June.<\/p>\n
But Hyundai said in the statement that it expects to post a
\n\"considerable amount\" of net profit for this year and a \"large-
\nscale\" net profit for next year on the back of synergy from its
\nmerger with the former LG Semicon Co.<\/p>\n
The South Korean electronics giant has pledged to cut the
\ndebt-to-equity ratio of its integrated semiconductor unit to 200
\npercent by the end of the year from 350 percent.<\/p>",
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