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Competitive Advantage Case Study

Case Title:

Hynix's Cost Efficiencies: The South Korean Chipmaker's Growth Strategies

Publication Year : 2006

Authors: Abdul Samad, Sumit Kumar Chaudhuri

Industry: Engineering, Electrical and Electronics

Region:South Korea

Case Code: CCA0021

Teaching Note: Available

Structured Assignment: Available

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Hynix Semiconductor Inc. was established in 1983 as Hyundai Electronics Industries Co. Ltd. Between 1997 and 2001, Hynix was on the brink of bankruptcy due to a downturn in the global chip market that left a huge debt burden on the company. However, it managed to come out of the crisis and transformed itself as the world's second largest and the most efficient manufacturer of memory chips in the world.

Pedagogical Objectives:

  • To understand the growth of Hynix from the early 1980s and its decline in the late 1990s
  • To discuss the strategies adopted by Hynix to recover from the brink of bankruptcy and become the second largest memory chip manufacturer in the world by efficiently managing its costs

Keywords : World's top memory chipmakers; South Korean chipmakers; Cost efficiency in chip manufacturing; DRAM (Dynamic Random Access Memory) chip manufacturers; Hyundai Electronics Industries Co Ltd; Micron; Samsung; LG Semicon; Corporate restructuring in South Korea; STMicroelectronics; NAND (not and) flash chip manufacturer; ProMOS Technologies Inc; Growth Strategies Case Study; Deutsche Bank AG; Ekahau RTLS System; Downturn in global chip market

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