Hyundai-LG Semi – the deal is on

Whew…that took a while…

The protracted discussions between Hyundai and LG Semi have reached a conclusion, forming a new world giant in memory manufacture. The deal was concluded in Korea today, with Hyundai paying $2.1 billion for 59 per cent of LG Semicon. And the president of Hyundai, at the signing ceremony in Seoul, said that there will now be an immediate restructuring of the existing business. That could mean a resolution to the long standing question of what the new chip goliath will do with moth balled fabs in Wales and Scotland. LG Semicon had initially fought the merger, which came about as a result of pressure from the International Monetary Fund and the South Korean government. But a third party consultancy, Arthur D. Little, finally brokered an agreement, with LG effectively being forced to bite the bitter bullet earlier this year. ®

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