Feeds

US government could put spanner in DRAM works

Questions linger over whether IMF money affects LG-Hyundai deal

  • alert
  • submit to reddit

High performance access to file storage

The merger of LG Semicon and Hyundai's chip business will make it the second biggest DRAM company in the world after Samsung. But if the IMF's funds are used to prop up the Korean economy, the United States is likely to respond negatively, according to a senior semiconductor analyst at Dataquest Europe. Analysing the events of the last six months, Richard Gordon said that LG giving away its semiconductor division to Hyundai meant the shape of the DRAM market had changed drastically. Now, Samsung will be number one, Hyundai will be number two, Micron number three and NEC number four. The other players in the market are way below the top four, he said. Gordon said: "The two companies [LG and Hyundai] were forced together by the government and neither was very keen. They reluctantly went down the route of using a third party [ADL] and hoped the problem would go away." He said that LG did not like the solution Arthur D Little proposed but the government said, 'thou shalt'. Much of the discussion was down to politics, said Gordon. They thought the DRAM market was going to get better and so imagined they would reap the results. Gordon said: "Hyundai is number two now, but two and two don't always make four. The US government is concerned about whether IMF funds are being used to prop up the [South Korean] economy. It will be interesting to see whether IMF money is used in that way." ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.