$7bn hand-out rubs chip firms up the wrong way

NEWS Chip companies Micron and Infineon are complaining to the World Trade Organisation over the $7bn government aid package given to struggling South Korean chip firm Hynix. Bosses at the two companies have criticised the South Korean government's intervention, claiming it violates WTO subsidy terms. Hynix received a $7bn rescue package last week after teetering on the edge of bankruptcy for several months with debts of $6.7bn. Last week's rescue is the third time in six months the South Korean government has stepped in with multi-billion dollar aid packages, despite uncertainty from some of the company's creditors about the long term viability of bail out payments.