As expected, Micron Technology Inc. has condemned Monday's move by South Korean banks to provide financing to Hynix Semiconductor Inc., calling the plan "illegal."
"This decision was made despite ongoing U.S. Dept. of Commerce and International Trade Commission investigations into nearly $12 billion worth of similar bailouts in recent years and an ongoing investigation by the European Union into those same improper subsidies. The bailout decision was also made despite repeated protests in recent weeks by U.S. Congressional representatives and the U.S. Embassy in Korea to stop further government subsidization of Hynix," the company said.
"In addition to the $4 billion bailout plan, in a separate action, 3-of-the-4 lead Hynix creditor banks also announced recently a $180 million loan package to BOE Technology Group of China to help BOE purchase Hynix's thin-film transistor LCD unit a transparent effort by those same creditor banks to provide additional government-backed funding to cash-strapped Hynix.
"We will continue to object vigorously to these ongoing illegal subsidies. We believe the ongoing investigations will prove that the Korean Government's continued, billion-dollar bailouts of Hynix are in clear violation of free market principles and of WTO [World Trade Organization] and U.S. trading laws," Micron said.