Hynix to cut spending, delay China JV investment
SEOUL, Dec 24 (Reuters) - Hynix Semiconductor Inc (000660.KS) said on Wednesday it would cut planned spending on a South Korean plant and delay a $260 million investment in its Chinese joint venture as it tries to deal with a cash shortage amid a downturn.
The world's second-biggest maker of computer memory chips said in a filing with the Korea Exchange that it had revised down a planned 646 billion won ($491 million) in spending to upgrade its domestic production facility to 491 billion won, citing the "business environment."
Hynix would also delay a planned $260 million investment in its Chinese plant, run jointly with Numonyx, to 2009 from 2008.
The announcement comes after Hynix secured on Wednesday $600 million in relief funding via fresh loans from shareholders and a new share issue. [ID:nSEO300822]
Memory chip makers worldwide are struggling to raise cash and reduce production to survive the industry's worst downturn, as chip prices plunge and consumer demand for electronics dries up.
Hynix shares slid 12.7 percent to end at 6,720 won before the announcement, compared with the wider market's 1.4 percent loss. ($1=1314.8 Won) (Reporting by Rhee So-eui; Editing by Jonathan Hopfner)
