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Technology Stocks : Micron Only Forum

MU 237.01

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Nov 13 3:59 PM EST

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To: Bilow who wrote (53465)	1/10/2002 12:15:39 AM
From: ild	Read Replies (1) of 53903

Wednesday, January 9, 2002 Micron wary of union trouble at Hynix DRAM fabs By Jack Robertson EBN (01/07/02, 03:06:12 PM EST) Micron Technology will try to avoid trouble with Korea's combative unions by agreeing to take over a limited number of leading edge Hynix Semiconductor DRAM fabs in a joint venture and offering a no-layoff pledge for these plants only, according to some industry analysts. Labor unrest could scuttle the talks aimed at Micron gaining control over Hynix' DRAM operations. Indeed, labor unions did strike during the original acquisition of LG Semicon by then-Hyundai Electronics Co. in 1999 to force guarantees of no layoffs. The subsequent inability of the renamed Hynix Semiconductor Inc. to close down old and inefficient fabs has been seen as a major factor behind the Korean firm's spiraling losses. Knowing the volatile nature of Korean labor unions, Micron reportedly will try to keep peace by only taking control of the firm's top DRAM fabs, where it can offer the no-layoff pledge. The older fabs that do not become part of the joint venture would be left to Hynix and its creditors. Some of these aging fabs would be converted to foundry and logic chip production, a process that Hynix has already started. Micron is likely to insist that any fabs outside the joint venture and its control do not make DRAMs. Asked to comment, a Micron spokesman reverted to the firm's long-standing statement that it continues to negotiate with Hynix but the nature of the talks remains confidential. Due to the time difference with Korea, Hynix representatives could not be reached for comment. ebnonline.com

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