Hynix sells non-memory-chip unit

InTech, Jul 2004

Citigroup will pay $822 million to pick up Hynix Semiconductor Inc.1S non-memory-chip operation. Now Hynix will be free to expand its core business: producing computer memory chips.

The nonmemory operation makes chips for flat-panel displays and camera-equipped mobile phones. That unit accounted for 18% of Hynix's total sales in the first quarter.

The disposal is part of the South Korean company's efforts to raise cash and reduce debts.

The world's third largest producer of memory chips, Hynix wants to build a $1.5 billion production facility near Shanghai.

With this sale, Hynix gained a line of cash, resources for investment, and debt repayments, officials said.