Brian,
Korea Inc is deep in debt. The IMF will probably frown on any "rob Peter to pay Paul" type financing schemes.
Having said that, I think they may have other source of funds. This is a pure guess but I think it is most logical for stronger US companies to step up to the plate. As an example, DELL can buy or JV with Samsung, using the cash to buy themselves a future supply. The chip prices will stabilize one of these years. Having a reliable source may not be a bad idea, especially when you can pick it up at fire sale prices.
By the way, did anyone see this article the other day?
Ramsey
TOKYO, JAPAN, 1998 JUN 25 (NB) -- By Martyn Williams, Newsbytes.
Motorola Inc. [NYSE:MOT] is planning to spend US$1.5 billion to expand
a semiconductor plant in Tianjin, northern China, according to
China's official Xinhua news agency.
The report, yet to be confirmed by Motorola, quoted Pinyong Lai,
president of Motorola China Electronics Ltd, as saying the firm will
spend the money over the next two and a half years to increase
production of semiconductors for telecommunications and other
applications.
Xinhua said the figure will take Motorola's total investment in China
to $2.5 billion, the same figure as was announced late last year,
although the report also said it was new investment. |
