Intel will invest US$500 million in Hyundai Electronics Industries
Jan 12, 1999 - Intel Corp. of the United States will invest US$500 million in Hyundai Electronics Industries, which is to merge with LG Semicon, through equity participation, a Hyundai official said Monday.
He said that Hyundai's negotiation with the U.S. semiconductor giant, which has been progressing at a snail's pace, will be completed by the end of March at the latest with the agreement for integration between Hyundai and LG Semicon.
Intel will own about a 10% stake in the integrated semiconductor firm, which is to be led by Hyundai Electronics Industries, according to the official.
Hyundai also plans to attract up to US$1.5 billion in its liquid crystal display and telecommunications business units.
Meanwhile, negotiations for the Hyundai-LG semiconductor merger are dragging, as LG Group has taken a rigid stance on terms. LG is insisting on a guaranteed retention of employees for five to seven years, as well as cash payment for equity in LG Semicon.
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