LG workers shut down one fab, slow down another
By Jack Robertson
WASHINGTON -- An LG Semicon Co. spokesman in Seoul, South Korea, today confirmed that disruption by workers grew worse when employees at the chip maker's Chungju fab walked off their jobs, shutting down production lines completely. Employees at the LG's fabs in Kumi, South Korea, remained on the job but continued their slowdown work action, he said.
The focus of the labor disputes is the workers' fears that they will lose their jobs if Hyundai Electronics Industries Co. acquires LG Semicon as planned. Workers are also demanding a seven-year guarantee from Hyundai that it will not eliminate jobs after it takes over the LG fabs.
As previously reported, LG Semicon workers last week launched the work slow-down, cutting fab output by 50% (see Jan. 22 story). The dispute began in the assembly and test backend operations, when workers started overly-extensive testing and re-testing of chips. The slow-down then spread to other fab operations.
The 50% drop in output, if it continued for any length of time, could have a major impact on the global DRAM market supply. LG has about 7% of the global DRAM market share and is a major player in world spot markets. The total fab shutdown at Chungju could have an even more severe effect on DRAM markets.
The LG spokesman said he has no guess on how long the labor disputes will continue.
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