The rating on Korea-based Hynix Semiconductor Inc. (B+/Positive/--) reflects the deeply cyclical nature of the semiconductor industry, the company's ongoing need for capital expenditure, and rapid advances in technology. These negative factors are offset by the company's strong market share in the global dynamic random access memory (DRAM) industry, strong technological capabilities, and good operating efficiency. Hynix held the second-largest share of the global DRAM market in fiscal 2009, at 22%, behind industry leader Samsung Electronics Co. Ltd. (A/Stable/A-1), with about 34%. Hynix was also the third-largest supplier of NAND flash memory in the same period. In fiscal 2009, the company generated about 75% of its revenue from DRAM and 17% from NAND flash memory. Hynix has strong technological capabilities.
