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Last Updated: Wednesday, 13 August, 2003, 05:23 GMT 06:23 UK
Weak chip prices hit Hynix
Weak memory chip prices have increased losses at South Korea's struggling chipmaker, Hynix.

The financially-challenged firm racked up losses of 530.2bn won ($450m; 270m) in the three months which ended in June.

That is a 27% larger loss than suffered during the same three months a year earlier, dashing hopes that the semiconductor industry is on the road to recovery.

Hynix blamed the Iraq war and the Sars outbreak in China for a slump in demand for personal computers, forcing it to dramatically cut chip prices.

Despite the widening loss, Hynix is once again predicting that it is over the worst and said its cost structure is improving.

However, its return to financial health is likely to be hindered by Tuesday's announcement that the EU and US will slap additional import tariffs on its memory chips.

Hynix, meanwhile, has vowed to protect itself by widening its portfolio of chips away from its core memory product that are used in PCs.


SEE ALSO:
Rescue plan for chip giant Hynix
30 Dec 02  |  Business
US steps up Asian trade wars
24 Jul 03  |  Business
Hynix rescue plan gets the nod
25 Feb 03  |  Business


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