Welcome to AsiaBizTech Web Site

Top Page
Site Map
News at a Glance Member Services AsiaBizTech Resources

Advanced Search

(Nikkei BP Group)

(No.1 High-Tech News Site in Japanese)

  • Hyundai Electronics to Spin Off Communication Device Sector
  • November 9, 1998 (SEOUL) -- Hyundai Electronics Industries Co. will spin off its communication device sector and turn it into a joint venture with Siemens AG of Germany, a company spokesman said Nov. 5.
    Siemens will buy a 49 percent stake in the new company for about US$200 million and Hyundai Electronics will hold managerial rights, industry watchers said.

    Also, the two companies formed a strategic alliance covering marketing and technology transfer, which will allow Siemens to acquire Hyundai's CDMA digital technology.

    Hyundai began negotiations with Siemens in late October. At that time, the German company agreed, in principle, that it would participate in Hyundai's efforts to attract foreign capital.

    Hyundai will use the proceeds from Siemens to advance its restructuring and expand its facilities investment. Many units have been spun off from Hyundai Electronics since early this year. They include those of personal computers, satellite components and semiconductor assembly.

    Recently, the company announced an additional spin-off plan of its LCD and electronic auto-parts sector, leaving only semiconductor fabrication untouched.

    Industry watchers regard the moves as part of Hyundai's agreement to merge its semiconductor business with LG Semicon later this year.

    (Maeil Business Newspaper, Korea)

    <Visit News Center for more Asian news.>

    Copyright © 1997-98
    Nikkei BP BizTech, Inc.
    All Rights Reserved.
    Updated: Sun Nov 8 18:34:16 1998 PDT