April 22, 2004 – A US-backed creditor of Hynix Semiconductor has proposed a new business plan for the South Korean chipmaker based on the industry’s rebound, but domestic creditors aren’t jumping on board, according to a report from Agence France-Presse.

The Korea Exchange Bank, which controls a 14% stake, supports Hynix’s plan to build a 300mm fab in China’s Jiangsu Province, which would be 80% paid for by the Chinese government, and proposed STMicro as a potential partner.

However, the state-run Korea Development Bank and other creditors doubt the feasibility of the plan, saying the company doesn’t have the capital to pursue the project, and citing concerns of a future downturn in the market.