EUGENE, Ore. (AP) - Hynix Semiconductor Inc. is closing its Eugene memory-chip plant that employs more than 1,100 workers.

Hynix CEO Kim Jong-kap told state officials the closure was based on the chip industry's move to larger, more efficient 300-millimeter silicon wafers instead of the 200-millimeter wafers made at the Eugene plant.

Kim gave the news to Gov. Ted Kulongoski at a meeting Wednesday afternoon. Company officials planned to meet with workers Thursday.

"The Hynix announcement today of their intention to close their Eugene facility is disappointing and comes at a difficult time for the Eugene community," Kulongoski said in a statement.

"Hynix has played a significant role in Eugene's economy and their departure not only impacts their employees but the entire county."

Hynix said production at the Eugene factory would cease by the end of September. The company said in a statement it might continue to use the facility for a "similar business," but it did not elaborate. Other options included selling the equipment, building and land to another semiconductor manufacturer, or selling the land and building and relocating the equipment.

"As soon as decisions are finalized, the company will communicate plans to the Eugene community and Oregon government leaders," Hynix said.

Park Seong-ae, a Hynix spokeswoman, said the company is also reviewing options for four other 200-millimeter wafer production facilities in South Korea and China.

The news of the Oregon plant closing was first reported by The Register-Guard newspaper of Eugene on its Web site. It said workers would be let go during August and September.

Kulongoski said the state would deploy a "rapid response team" to assist laid-off workers.

Hynix is one of Lane County's biggest employers, with an annual payroll of $62 million.

The city and Lane County granted millions of dollars in property-tax waivers to entice the South Korean firm, then known as Hyundai, to build its $1.4 billion plant in west Eugene. The tax breaks were a source of controversy from the day the company announced in May 1995 that it would build the plant here.

Hynix, the world's second-largest memory chip manufacturer, said in April that it swung to a net loss in the first quarter on a sharp fall in memory chip prices due to oversupply in the industry.

(Copyright 2008 by The Associated Press.  All Rights Reserved.)