Korean semiconductor merger confirmed

Korean semiconductor merger confirmed
David Manners
With Hyundai and LG Semicon finalising their long-awaited merger of their semiconductor operations, the assumption is that Hyundai’s UK fab site in Fife, Scotland will get the go-ahead while the LG fab site in Newport, south Wales will be shelved.
The price Hyundai has paid for LG Semicon is $2.1bn. The combined group will have $10bn worth of debt, ten times its equity, and enough capacity to take 20 per cent of the world’s DRAM market.
Scottish Office officials are more confident that Hyundai will now go ahead with its Fife fab. However, it is less likely that the Newport fab – now part of the LG consumer electronics operation – will go ahead as Hyundai is unlikely to run a factory within an LG site.

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