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STMicroelectronics tipped to buy Siemens fab

Great Stan of Spin Mandelson could be involved

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Sources at chip distributors said today that the likely candidate to buy the state of the art fabrication plant that Siemens said it would close in early August is STMicroelectronics. The French company, formerly called SGS Thomson, has the funds and the will to snap the company up, one source close to the discussions said. But if a deal emerges, it is likely to be part of a joint venture. The so-called Blackfriars project is likely to be concluded with the aid of an Italian and a Dutch company. DTI minister Peter Mandelson is understood to be involved in brokering the deal. As DRAM prices will rise because of the merger between LG Semicon and Hyundai, the investment is likely to have much funding from Europe. ®

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