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Hynix says US chip decision to bring turnaround

Hynix says US chip decision to bring turnaround

Hynix Semiconductor Inc. said Thursday that the United States has decided to end punitive duties imposed on the company in 2003, a move the South Korean company says will help put it back in the black.
Hynix, the world's second-largest manufacturer of computer memory chips, said in a statement that the Department of Commerce released a letter notifying the U.S. International Trade Commission that it planned to revoke the duties no later than 90 days after July 1.
Park Seong-ae, a Hynix spokeswoman, said the company's attorney received a copy of the letter by fax from the Department of Commerce.
The letter, dated Tuesday, said the decision to revoke the duties came because there was no "substantive response" from U.S. parties during a review of the tariffs.
Hynix furnished a copy of the letter to The Associated Press. The U.S. Embassy in Seoul was checking its validity.
Hynix said it expects that the "actual effect of the revocation will come into force retroactively" from Aug. 11, which marks five years since the duties were imposed.
The United States, the European Union and Japan all slapped countervailing duties on Hynix dynamic random access memory, or DRAM, chips over what they alleged was unfair South Korean government support for the company when it twice nearly collapsed twice under mountains of debt in 2001 and 2002.
South Korea fought the tariffs at the World Trade Organization with mixed success. The WTO said that some of Seoul's financial support for Hynix was indeed illegal.
The global body upheld Washington's 44.71 tariffs, but called for the EU and Japan to recalculate theirs.
The EU, which also slapped its tariffs on Hynix in 2003, said in April it was repealing its duties of more than 30 percent effective at the end of last year.
An arbitrator for the WTO said in May that Japan has until Sept. 1 to amend its 27.2 percent duty, which was imposed in 2006.
Icheon, South Korea-based Hynix in July reported a loss in the three months ended June 30, its third straight quarter of red ink, and also said it was shuttering an outdated factory in Eugene, Oregon.
The company has been battered by steep price declines for chips amid an industry oversupply. Hynix competes with South Korean rival Samsung Electronics Co., the world's largest memory chip manufacturer.
Besides DRAMs, mostly used in personal computers, the companies produce NAND flash chips used in digital devices such as music players and cameras.
The U.S. decision "will provide the ground for Hynix to gain a positive turnaround in the second half of this year," Hynix said.
The company added that it will be able to "freely sell its Korea-originated DRAM and actively apply its marketing strategy in the U.S., the top DRAM market in the world."


Updated : 2020-12-01 13:44 GMT+08:00