| DRAM
       With its large DRAM wafer production capacity, ceaseless technological 
      innovation, and pursuit of the highest in quality, Hynix is now leading 
      industry efforts to develop and manufacture DDR, Rambus and ultra-high 
      speed DRAM. Steady R&D investment and leading technology has given 
      Hynix a head start in the development of these high-speed memory 
      semiconductors, which are poised to challenge Giga and Tera bit memory 
      semiconductors, the so-called "dream semiconductors". 
      Hynix is one of the leaders in developing ADT (Advanced DRAM 
      Technology), the next generation in DRAM technology. Currently, Hynix 
      offers a full range of products from 4M to 512M sync, EDO to DDR and 
      Rambus, and from memory modules for Desktop PCs to low-power/miniaturized 
      memory products for digital consumers. Hynix also offers memory modules 
      for high-end servers. Through its global manufacturing network Hynix is 
      securing a position as a well-respected DRAM supplier to customers 
      worldwide. 
      Hynix's strategy of advanced entry into the DDR market means that it 
      now boasts the highest market share in the graphic area present. It was 
      the first to develop the 512M DDR for mass production, and it also has 
      received recognition for the excellent standard of its DDR product from 
      major DDR chipset suppliers. However the Company is never satisfied or 
      complacent about its position. Hynix will continue to develop new products 
      and new technologies required in the 21st century. 
        
      SRAM 
      Following the development and full-scale marketing of a product line-up 
      of 1.8V-3V SRAM from 1M to 8M targeting Mobile Phone applications, the 
      Hynix's SRAM business went from achieving a 200% growth rate in 1999, to 
      achieving more than 300% growth rate in the year 2000. As a result, SRAM 
      revenue improvement made up 7% of total semiconductor revenue in 2000. 
      There are a number of key factors behind these successful results. 
      Adequate investment in R&D, secured a dedicated SRAM dedicated product 
      on line, rapid growth in the mobile communications market, and stable 
      demand through long-term supply contracts with major mobile phone 
      manufacturers resulted in a significant growth in sales. 
      At present, Hynix offers a full range of SRAMs from 1M to 8M, and 
      expects to reduce manufacturing costs by migrating from a 0.25um to 0.18um 
      process. In respond to demands for high-density memory for the next 
      generation mobile communications technology, the Company is developing 
      Pseudo SRAM based on DRAM technology, an area where Hynix is taking the 
      lead. Through continued technological innovation, pursuit of higher 
      qualification, and concerted cost-reduction efforts Hynix will continue to 
      satisfy its customers and secure a respected position in the world SRAM 
      market. 
        
      FLASH MEMORY 
      The Flash memory market has grown dramatically in the past few years as 
      the number of applications and the usage per application has expanded. 
      According to industry analysts, the market doubled to more than USD 10 
      billion during 2000 and the market is expected to show continued growth 
      for the next several years. 
      Headquartered in San Jose, California, and with design, technology and 
      product/test engineering teams in the USA and Korea, Hynix's Flash 
      Business Unit designs, manufactures and markets Flash memory solutions for 
      high-volume applications. These applications include cellular phones, DVD 
      players, personal computers, set-top boxes, Personal Digital 
      Assistants(PDA), hard disk drives, modems and a variety of 
      telecommunications and networking equipment. Current product offerings 
      from Hynix include operating voltage ranges of 4.5-5.5 volts, 2.7-3.6 
      volts and 1.8-2.2 volts and densities from 2-32M. All products are 
      compatible with AMD and manufactured at Hynix's world-class DRAM 
      fabrication facilities in Korea, enabling rapid adjustments in capacity to 
      meet its customers' volume product needs. Hynix's Flash memory is fully 
      compliant with the JEDEC Standard for single-supply Flash memory. 
      Hynix began manufacturing Flash memory in 1999, and sales grew to more 
      than USD 110 million in 2000. The Company's Flash memory technology 
      roadmap plans a migration from 0.25um in 2000 to 0.18um in 2001 and 0.13um 
      in 2002. These developments will help the Company achieve steady, high 
      revenue growth, cost reduction, and consequently maximum profitability. 
        
      Hynix successfully established a foothold in the sector, posting as 
      high a growth rate as 170% a year in sales. In 2000, the Company focused 
      on the non-memory business as part of its policy to develop a 
      well-balanced business portfolio. 
      Success was a result of concentrating on the Company's core abilities 
      and foundry, one of its strongest points, as well as on three major 
      application products (LCD Driver IC, MCU and CMOS Image Sensor). Synergy 
      effects from merger and integration, timely development of sophisticated 
      new products, and success in attracting large-scale customers also 
      contributed to the success. The Company will continue to strengthen its 
      position as a pure semiconductor business player by building a portfolio 
      of memory and non-memory products. 
        
      SMS(Foundry) Business 
      Hynix plants to strategically foster the Foundry business and maintain 
      a high growth rate in the new year by promptly switching over some 
      memory-producing chip facilities to mass-producing non-memory chips with a 
      capacity of 8 inch equivalent 82,000 wafers per month. The Company also 
      seeks higher start volume in the Foundry business through the embedded 
      memory (DRAM, SRAM, Flash, FeRAM) on a mid-to-long-term basis. 
      In the New Year, the Company started volume production of 0.25um 
      foundry products, new core products, having already secured bulk-purchase 
      customers. 
        
      Standard Product Business 
      In the System IC sector, Hynix expects to enjoy rapid growth by 
      focusing on increased profitability and added value for three major 
      strategic items (LCD Driver IC, MCU and CMOS Image Sensor). 
      Hynix achieved a 350% increase in 2000 for sales of LCD driver IC 
      through securing TFT-LCD manufacturers as clients. Hynix expects to become 
      a leader in this sector through is development of micro color STN LCD 
      driver ICs for cellular phones. PDA, and DSC, which are expected to show a 
      continued increase in demand in the future. The Company also plans to 
      selectively develop several major products including CMOS, RF and digital 
      media applications, as it anticipates they will become future major 
      sources of revenue in the era of digital home appliances, information and 
      telecommunications.  |