The ratings on Korea-based Hynix Semiconductor Inc. (B+/Positive/--) reflect 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, or about 22%, of the global DRAM market in the fourth quarter of 2010 (ended Dec. 31), behind industry leader Samsung Electronics Co. Ltd. (A/Stable/A-1), which held about 41% of the market. Hynix was also the fourth-largest supplier of NAND flash memory in the same period. In fiscal 2010, the company generated about 80% of its revenue from DRAM
