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 Elecs., LG Semicon to Merge into World's Top DRAM Maker
  • September 8, 1998 (SEOUL) -- Hyundai Electronics Industries Co., Ltd. and LG Semicon Co., Ltd. agreed to merge into what will become the world's largest producer of DRAM chips.
    The move is part of a "big deal" business swap which has been pushed by the government and Korea's top conglomerates in a bid to shore up their finances and external competitiveness.

    "Hyundai and LG groups agreed, in principle, on the merger of their semiconductor units. Details on how to share management control and stakes will be settled later," said a spokesperson of the Federation of Korean Industries (FKI).

    The FKI is a powerful lobbying group for Korea's large, family-run business groups, or chaebols.

    The merger will pose a threat to Samsung Electronics Co., Ltd., which was dropped from the deal, as well as rivals in Japan and Taiwan, industry watchers said.

    The combined company will have capacity to fabricate a total of 310,000 silicon wafers of 8 inches in diameter per month.

    The two companies, together with Samsung Electronics, currently represent nearly one third of the world's memory chip supply.

    At present, Hyundai can produce 8 million units of 64Mb DRAMs and 18 million units of 16Mb DRAMs a month, while LG can make 9 million 64Mb DRAMs and 25 million 16Mb DRAMs a month.

    (Maeil Business Newspaper, Korea)

    Copyright © 1997-98
    Nikkei BP BizTech, Inc.
    All Rights Reserved.
    Updated: Fri Sep 4 20:12:57 1998 PDT