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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: John Rieman who wrote (35671)	9/3/1998 7:47:00 AM
From: PaulW	Respond to of 50808

Zoran's Digital Audio Processor Shipping in Toshiba Corporation's 3rd Generation DVD Players biz.yahoo.com

To: John Rieman who wrote (35671)	9/3/1998 9:30:00 AM
From: BillyG	Respond to of 50808

09-04-98 Hyundai, LG Merger to Alter Global Chip Mart By Nam In-soo Staff reporter The agreed-upon merger of the Hyundai and LG groups' semiconductor businesses is expected to boost Korea's standing in the global chip market, while signalling a change in the industry's overall landscape, analysts said yesterday. As part of the nation's corporate restructuring efforts, the two conglomerates agreed yesterday to merge Hyundai Electronics Industries Co. and LG Semicon Co. into one company to boost local and overseas competitiveness. While details, including managerial control of the united company and its equity shares share-out, have yet to be determined, analysts agree that creating a giant chip-making firm will alter the industry's global pecking order. Currently, Hyundai and LG supply 9 percent and 6.7 percent of the world's semiconductor market, respectively. The merger will result in a combined market share of 15.7 percent, placing the new chip maker immediately after Samsung Electronics Co., the world' No.1 memory chip manufacturer, with its 18.8-percent market share. The merger will also effectively downgrade U.S.-based Micron and Japan's NEC, which account for 14.1 percent and 12.1 percent, respectively, putting them not only behind Samsung but also the new Korean firm. ''The merger is Korea's chance to take an unwavering lead in the global chip market by enhancing its competitiveness,'' an industry analyst said. Korea sees semiconductors as the center of its business growth, since memory chips comprise more than 15 percent of the country's total exports. But thanks to sagging global demand and fierce competition, chip revenues began faltering this year because of the sagging global demand and fierce competition, leading local firms to shift to higher value-added non-memory chips and equipment to maintain its lead into the next century. However, a large stumbling block to the merger remains as Hyundai and LG are fighting for a controlling stake in the new semiconductor company. Hyundai, citing its larger market share and investment potential, had initially insisted on absorbing LG's semiconductor unit, while LG Semicon sought joint management of the merged chip making company. During the first half this year, Hyundai posted 12.3 trillion won in net assets, while LG reported its figures stood at 7.8 trillion won. ''Joint management is out of the question. With a dual leadership system, we will not be able to effectively compete against Samsung or other world competitors,'' said a Hyundai Electronics official. But LG stuck fast to its stance, saying that it has a technological advantage over Hyundai as was confirmed by its turnover volumes. While Hyundai posted 1.8 trillion won in sales of semiconductors, LG sold 2 trillion won worth of chips in the first half. Meanwhile, Samsung Electronics played down the effect of the merger on domestic and global chip markets. ''Since the two companies use different methods of chip production and technology, the merger will not necessarily bring about synergy,'' a Samsung official said. koreaherald.co.kr