Nov. 19, 2001 – Korea – Hynix Semiconductor and Aralion, leader of an ASIC consortium, will reportedly sign a non-disclosure agreement (NDA) to discuss the sale of Hynix’s chipmaking facilities.

Aralion said the consortium will inspect the chipmaker’s Gumi plant next week to size up the conditions of its non-memory chipmaking equipment and materials, according to the Financial Times.

An Aralion executive said every detail of the negotiations will be confidential, but there is no change in the company’s plan to set up an independent firm to take over the Gumi plants’ two fabs.

Seven to eight ASIC companies are reportedly ready to join the consortium.

Considering current economic conditions, the Aralion consortium, however, is likely to run into funding problems since it plans to secure foreign loans as well as domestic bank loans, along with a bond issue to finance its deal with Hynix.

A Hynix source said Hynix is open to any sales pitch either foreign or domestic and the signing of the NDA is a signal that earnest talks to sell the company will begin.