Hynix Idles Southern Oregon Chip Plant

EUGENE, OR-Hynix Semiconductor says it will idle its Southern Oregon chip-making plant for six months due to a weak semiconductor market. The shutdown begins today and affects some 600 workers. Another 200 workers will remain at work, handling administrative duties, and the company says it hopes to rehire all laid-off workers by the end of the year.

Last week, one month after being denied a two-year extension of a three-year property tax waiver related to the $1.4 billion cost of constructing its west Eugene plant, Hynix requested a three-year property tax waiver for $156 million in equipment upgrades it wants to make en route to producing next-generation chips there by the end of the year.

The request is being made under the west Eugene enterprise zone program. It was created by the City and Lane County in 1987 and closed to new participants in 1997, but those who got in can continue locking in property tax benefits until 2007.