Creditor officials said Wednesday they will meet Thursday to approve the plant project, which will be promoted with investment from STMicro and Chinese banks to minimize the risk in building the plant.

They had rejected the plan in April due to uncertainties in the project and insufficient support materials.

STMicro is expected to invest $150 million, while local banks will pour in $100 million. Hynix, STMicro and local banks will conclude a contract as early as next Thursday, they said.

They will also induce STMicro and local lenders to invest $350 million and $650 million, respectively, to build a 12-inch wafer plant in China, with an investment from Hynix worth $200 million.

The creditors will further allow Hynix to invest domestic facilities worth $200 million and $100 million cash in the 8-inch wafer plant. Out of the cash amount, up to $50 million would be used as paid-in capital for the Chinese subsidiary, the officials said.

Hynix’ net income for the second quarter rose to 625.2 billion won, a quarterly record high, from a loss of 526.3 billion won a year ago, on the back of a 17 percent gain in the prices of dynamic random access memory (DRAM).

For the cited period, Hynix earned 648 billion won in operating profit, a major turnaround from a loss of 223.7 billion won in the previous year. Its sales rose 116 percent to 1.68 trillion won.

By: DocMemory
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