"Our goal is to pay back a significant amount of debt while at the same time being able to invest in what we require," said company CEO Kim Jong Kap. "2010 will be a good year for the memory chip industry and the possibility of oversupply seems low."

The case in San Francisco County Superior Court centers on allegations by Rambus that Micron Technology, Samsung Electronics and Hynix Semiconductor illegally conspired to boycott technology developed by Rambus and took other actions to block its acceptance.

The United Arab Emirates (UAE) government is mulling plans to buy a stake in South Korea's Hynix Semiconductor, according to Dow Jones.

Stock market insiders say Samsung Electronics will easily achieve an operating profit of more than two trillion won (US$1.71 billion) and Hynix of more than 600 billion won for the quarter.

Hynix Semiconductor has revised upward its capex budget for 2010 to 2.3 trillion won (US$1.95 billion), according to its company filing with the Korea Exchange. In October, it set a goal of more than 1.5 trillion won.

Hynix Semiconductor expects to be profitable in 2010 after posting huge losses in the early part of this year, in an indication that an industry downturn is ending and memory-chip business is poised for a recovery.

Korea Exchange Bank said on December 20 that the creditors of Hynix Semiconductor will send out invitations to Korean companies Monday (Dec. 21) to seek bids for their combined 28% stake in the chip maker.

Hynix Semiconductor plans to invest about 2.3 trillion won (about US$2 billion) in its semiconductor business – 1.5 trillion won in DRAM and 800 billion won in NAND flash memory and logic – in 2010, a 130% jump from one trillion won this year.

Hynix is slated to boost its production capacity of NAND flash memory at its 12-inch, Cheongju fab (M11) to 90,000 wafers per month in 2010 from the current level of 45,000 units, according to industry sources.

"DRAM revenues historically fall by 20% in the first quarter, but I don't think it will fall that much in 2010...," said Hynix CEO Kim Jong-Kap on the sidelines of semiconductor equipment trade show Semicon Japan.

"The group's top decision makers have reached a broad consensus that more measures would be needed to nurture future growth engines. But that doesn't necessarily mean LG will participate in an auction next month," an LG representative said. Despite such internal views, market analysts say LG could be the "right buyer" for Hynix.

"Once the STT-MRAM is developed, South Korea may be able to control roughly 45% of the 30nm type memory chip market by 2015..."

"If there is no potential buyer this time, we will seek other measures to build a new structure of the company, on which all the stakeholders and interested parties can agree," according to the Korea Exchange Bank, the main creditor of Hynix.

Korea Exchange Bank (KEB), representing creditors, is planning to send out invitations for the auction to domestic companies between Nov. 25 and Dec. 15, its officials said. The action follows Hyosung Group's recent decision to scrap its bid to purchase Hynix.

South Korea's Hyosung has withdrawn its bid for Hynix Semiconductor, throwing the future of the world's second-largest memory chipmaker into doubt again.

"Even if Taiwanese and Japanese players ramp up production, the possibility of oversupply is slim as worries over a double-dip in the global economy are easing," says chief executive of Hynix Semiconductor. Sources estimated Hynix' capex for 2010 will double to 2 trillion won.

A better global economy and the launch of Microsoft's Windows 7 operating system are expected to support demand for memory chips through the first half of 2010, the chief executive of Hynix Semicondcutor has commented.

Hynix, IMEC, Intel, Samsung, Toshiba and possibly TSMC are the initial customers for ASML's "pre-production" extreme ultraviolet (EUV) lithography tool, according to an analyst.

Samsung and Hynix sources said strong demand for advanced DRAM or DDR3 chips, has resulted in a price upturn for both DRAM and NAND flash memory chips used in high-end handheld gadgets such as smart phones.

Uni-chem has signed a MOU to buy Hynix's memory chip plant and the accompanying land in Eugene, Oregon, for US$50 million. It plans to use the plant to make solar cells as part of the company's new business.

An international solar-related company is in talks with Hynix Semiconductor to buy the South Korea-based company's shuttered computer-chip plant in west Eugene, according to local government and economic development officials.

Korea Exchange Bank sent out bid notices to around 40 conglomerates on September 7, and four to five were believed to be interested. But only textile conglomerate Hyosung submitted a letter of intent.

Creditors of South Korea's Hynix Semiconductor have started the sale process for their controlling stake in the second-largest memory chipmaker.

The antitrust trial between memory chip designer Rambus and several chip makers, including Micron Technology, has been postponed, according to reports.

"The third quarter will be better from the previous quarter as chip prices are in the normalization stages after a years-long slump," said Kwon Oh-hyun, president of Samsung's chip division.

Hynix is expected to swing to an operating profit in the July to September period, ending its seventh consecutive quarterly loss. Samsung may also see profits rise further in its semiconductor unit in the third quarter.

Samsung plans to spend 70% of its total chip investment projected in the second half to sharpen the next DRAM chips, while Hynix will also use a great portion of its investment budget for the chips.

Hynix Semiconductor has said it would cut its investment in a new production facility by 45% and extend the investment period.

Hynix Semiconductor's contract prices for DRAM chips will likely continue to rise at least until the third quarter, a person familiar with the situation said Friday.

Hynix Semiconductor plans to raise its contract price for DRAMs by an additional 10% later this month on signs of increased demand, a high-ranking industry source said Friday.

Samsung may ask its key PC-related clients to pay more. Hynix was looking for a chance to raise its contract-based chip prices for the second straight month.

A collection of top memory manufacturers formalized their commitment to developing a low-power DRAM for use in mobile devices on Monday. The backdrop, unfortunately, was a catastrophic drop in DRAM revenue, as measured by Gartner.

The two biggest producers, Samsung Electronics and Hynix Semiconductor, won larger shares of the shrinking market in DRAM chips in the first quarter, industry research firm DRAMeXchange said on Monday.

Hynix Semiconductor Wednesday said it will sell 70 million shares via a rights offering. The Korean chipmaker's main creditor Korea Exchange Bank said earlier this month that the creditors have reached agreement to allow the chipmaker to raise around 700 billion won (US$519 million) through a rights offering.

"Samsung Electronics was asked to supply 50 million 8Gb NAND flash chips to Apple, while Hynix was set to supply 20 million," a high-ranking industry source told The Korea Times by Monday.

The Japanese government will lift punitive tariffs on computer chips South Korea's Hynix Semiconductor makes, leading to a settlement of a three-year-old trade dispute between the two countries, Kyodo News reported Monday, citing Finance Ministry officials.

"I expect that the number of DRAM makers will be reduced by three or four from the current 10 this year," said Hynix Semiconductor CEO Kim Jong-kap.