Hynix Semiconductor to Carry Out Restructuring

by Anton Shilov
03/11/2003 | 08:32 AM

Hynix Semiconductor recently announced its plans to carry out an aggressive restructuring initiative. The actions include consolidation of management in the R&D and operations departments, establishing a Product Development Center, and reducing the number of executives. In addition, Woo Eui-jei was appointed as the company’s Chairman and Chief Executive Officer, while Oh Choon-sik was appointed as Chief Operating Officer of the memory chip division.

Hynix plans to consolidate management of its R&D and operations departments in an attempt to gain maximum efficiency and improve competitiveness by reducing time-to-market. The company will also consolidate multiply R&D departments and establish its Product Development Center which will allow a speedy ramp up of new products. The Product Development Center will control the entire process of making semiconductors through all stages, from product development to mass production.

Following last May’s 30% executive reduction, Hynix accepted the resignations of yet another 20% of 40 executives in the memory chip division. Hynix does not expect any major changes to the current management structure or any impact on the company’s operations.

I cannot admit that Hynix really plans to carry out something really grandiose, as the company has not issued any numbers concerning possible workforce reductions or other actions to bring the expenses down, but decided to stick to another side of the coin and tell us what they are going to do in general. Well, we have to admit that they do have another idea, however, it is pretty hard to draw any possible outcomes at the moment.