분야
pptx2.Situation & Solution ( 1~5 )
3.Connection to the theories
4.Total Framework
In 1999, IMF crisis was happened, Hyundai Electronics thought that this is a chance to extend their business. So they acquired LG semiconductor. And their name was changed to Hynix.
But LG semiconductor had a huge debts about 6.45 trillion won. So total debts of hynix were about 15 trillion won. And their debt ratio reached about 350%.
In 2000, hynix thought that D-RAM was their important cash cow because they believed the D-ram’s price would not decreased. So they fed other affiliate by using the cash cow.
But in 2001, IT&PC market was locked in the recession, the D-RAM’s sales were dropped from 9 trillion to 4 trillion won. Moreover, the D-RAM’s price was dropped from 8 to 1 dollar per unit.
Because of these unfavorable factors, Hynix declared default.
In this part, I’ll explain about the situation that hynix have to overcome and solution that could solve the problems in the situation.
I’ll show you 5 situations and 5 solutions.
The first situation is “ Needs for investment in Machines”
As I told you at the background, the D-RAM’s prices were declined. And plus, they had limited capitals because they fed their affiliate with the money that came from D-RAM business. But hynix needs new machines to get a competitiveness in the semiconductor industry. But it was hard to implement because of their limited capitals.
Then, how they solved this situation ?
They implemented Blue Chip Project. Blue chip project means remodeling old machine and manufacturing new product. So they achieved 90% production yield and showed 0.95 trillion won effect. They invested minimum cost and generated maximum effect.
