1. Introduction
1.1 Industry
1.2 Hynix
2. Ups and downs of Hynix
2.1 1st crisis in 2000
2.2 After the 2nd crisis in 2008
3. New chance of Hynix
3.1 Takeover by SK Telecom
3.2 Expected synergy
1. Introduction
1.1 Industry- Semiconductor
Semiconductor is a material that originally doesn`t conduct electricity but it conducts electricity when we apply heat or some impurity. So, it can be handled easily rather than conductor so that it is a critical part of almost every IT product.
In detail, Semiconductor can be classified by two big parts, ¡°Memory semiconductor¡± and ¡°Non-Memory semiconductor¡±. And Memory semiconductor is divided into ¡°D-ram¡± and ¡°NAND-flash¡±. D-ram is used in computer mainboard, and NAND-flash is used in cell-phone or MP3 player.
Thanks to this easy using feature and wide variety of using scope, the size of market is $298 billion big in 2xxx. In this huge industry, 23% of that market is a ¡°Memory semiconductor¡± market, which is $70 b¡¦(»ý·«)
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nix in 2001. Hynix is the company that experiences many risks and resuscitates thanks to huge amount of the public funds.
As we mentioned in industry intro, Hynix concentrates on D-ram part. You can find big difference with Samsung Electronics, Samsung has a many parts not only semiconductor but also has a part that concentrates on Digital media, telecommunication, LCD. The reason why we pointed this issue is that semiconductor industry has a very vivid pros and cons.
First of all, Semiconductor is very sensitive to economic cycle. It has a high elasticity of price comparing with other appliances. And because of its importance of the industry, the government of the Japan, US and Korea give a big support to these companies. So this market has a ¡°Chicken game¡± feature. It means they fight hardly by unit cost until some of their competitors go bankrupted. And also, they have to input tremendous part of their capabilities in R&D procedures because it is fast-growing and changing fe