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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: sandstuff who wrote (42514)	1/27/1999 7:41:00 AM
From: Chas	Read Replies (1) \| Respond to of 53903

Turmoil at LG continues By Jack Robertson WASHINGTON -- Workers at all eight of LG Semicon's South Korean fab lines walked off their jobs today in protest against the pending acquisition of the company by Hyundai Electronics Industries Co. If the complete shutdown continued for any length of time the loss of output could reduce the global oversupply of DRAM chips significantly at a time when demand remains strong (see Jan. 25 story). The escalating labor dispute involves workers' demands that Hyundai give them seven-year job guarantees after taking over the LG chip operations. Hyundai has pledged to refrain from any major layoffs after the LG acquisition, but steadfastly refuses to provide such long-term job guarantees. The LG disruptions started last week with only work slowdowns, but escalated Monday when employees at the Chungju fab walked out. The dispute has further stymied talks between the two companies to agree on final terms of the acquisition, including the sticky question of price. Originally the two sides had predicted the purchase deal would be completed by March. However, with little progress in discussions, the union of the two chip operations appeared as deadlocked as ever. I am not arguing you data, but my understanding is LG ships alot to the secondary and spot markets. I confirmed no shipments have been made this week. My LG contact indicated by 2nd half of Feb this will make a big impact in the market. I take that to mean any parts in the back end will have shipped by then. This LG thing could change the situtation in the DRAM market if this continues. We just need to watch it. I have heard of some major OEM's placing orders to offset no shipments from LG Monday and Tuesday. This is also an interesting sign, probably means if suppliers have extra stock, this will help insure its been used up quickly. I hope of course it will shore up MU stock a bit once we get more indicators in the market that this is taking place. Good trading.