Hynix plans spin-off of telecom systems unit
- 04 June, 2001 13:33
Hynix Semiconductor Inc., the financially-troubled South Korean company previously named Hyundai Electronics Industries Co. Ltd., has announced plans to further rationalize its central structure by spinning off its telecommunication system operations.
The move, which is expected to be completed by the end of June, is the final step in the separation of telecommunication business from Hynix's core semiconductor operations.
Earlier this year it spun off its telephone handset and ADSL (asymmetric digital subscriber line) operations into a new subsidiary. The company is suffering under the weight of 7.3 trillion won (US$5.7 billion) in debt and is hoping that by spinning off non-core divisions, it will be able to attract foreign capital. Hynix is also planning to leave the Hyundai business group in the coming few months. Its most recent previous step along the spin-off path was the announcement one month ago that it will separate its liquid crystal display (LCD) operations into a new unit. That new unit is expected to begin operations this week. Sales in the telecommunication systems business last year were 94.5 billion won, according to a company statement.