Hynix Semiconductor to Benefit from World Trade Organization Ruling
Hynix Semiconductor Inc., the world's third-largest memory chip manufacturer, will benefit from a World Trade Organization ruling that punitive tariffs imposed by the United States on the Korean company violate global trade rules.
Nevertheless, if the chip industry faces an oversupply, which some think is likely in 2006, the removal of tariffs will help Hynix by allowing it to gain full use of its domestic plants.
According to the Korean Herald a WTO panel ruled the U.S. failed to present convincing evidence that the Korean government had subsidized the struggling company by ordering banks to provide loans. The U.S. has decided to appeal the decision and a final ruling is not expected for months to a year.
In July 2003, the U.S. International Trade Commission decided to levy tariffs of 44.29 percent on memory chips made by Hynix on a request from U.S. semiconductor maker Micron Technology Inc.
Hynix said it was upbeat about the ruling and expressed optimism that this will help the company's standing in the row with the E.U. as well as a patent rights dispute with Japan that recently flared up.
Hynix Semiconductor, once the world's leader in semiconductor production, was the former Hyundai Electronics prior to its spin-off from the Hyundai Group.
Nevertheless, if the chip industry faces an oversupply, which some think is likely in 2006, the removal of tariffs will help Hynix by allowing it to gain full use of its domestic plants.
According to the Korean Herald a WTO panel ruled the U.S. failed to present convincing evidence that the Korean government had subsidized the struggling company by ordering banks to provide loans. The U.S. has decided to appeal the decision and a final ruling is not expected for months to a year.
In July 2003, the U.S. International Trade Commission decided to levy tariffs of 44.29 percent on memory chips made by Hynix on a request from U.S. semiconductor maker Micron Technology Inc.
Hynix said it was upbeat about the ruling and expressed optimism that this will help the company's standing in the row with the E.U. as well as a patent rights dispute with Japan that recently flared up.
Hynix Semiconductor, once the world's leader in semiconductor production, was the former Hyundai Electronics prior to its spin-off from the Hyundai Group.
Comments
Post a Comment