By Kim Yoo-chul
Staff Reporter
LG Electronics has clarified Friday that it will not take over Hynix Semiconductor, the world’s No. 2 memory chipmaker.
``We have learned how to live without a semiconductor business,’’ CEO Nam Yong told reporters on the sideline of an annual shareholders’ meeting at its headquarters in northern Seoul.
``We made the final decision because the possible acquisition will not generate significant synergy for us,’’ Nam added.
The move has widely been interpreted as a surprise because speculation had been high that LG might embrace the semiconductor business again for the electronics giant’s new growth engine.
In 1999, an indebted Hyundai Electronics took over LG Semiconductor as a grand restructuring project in the industry. Since disposing of the semiconductor business, LG Group has been focusing on its electronic expertise in home appliances and digital media.
``Even LG Group Chairman Koo Bon-moo seems disinterested in Hynix buying,’’ Nam reiterated. Korea Exchange Bank and other local creditors hold a combined 36.03 percent stake in Hynix. The creditors-turned-shareholders are looking to sell the stakes to a strategic investor.
Still Eyeing for M&A
Although the nation’s consumer electronics giant voiced strong opposition to re-enter the semiconductor business, Nam said that his company will continuously see chances of mergers and acquisitions (M&A) in other sectors.
``One of the core growth strategies for our company is to push up active M&As,’’ he told reporters without elaborating further.
Additionally, Nam expected the plasma display division to make a profit in the first half of this year, as profitability has been improving.
``The global plasma television market is shrinking. However, we will continue business as long as it brings about cash,’’ he said.
``LG still finds strategic partners for the plasma TV business.’’
Thanks to soaring demand for flat-screen television sets on the occasion of the upcoming Beijing Olympics and the faster policy shift to digital TVs in the United States, LG Electronics plasma TV business, which suffered sizable losses last year, is expected to improve.
``But we will not invest further in the plasma display panel production lines even though the business will turn in a profit during the first quarter,’’ he added.
On a question over a plan to increase its current 37.9 percent stake in LG Display, the world’s second-biggest liquid crystal display supplier after Samsung Electronics, Nam simply responded by saying, ``That’s enough.’’
Dutch-based consumer electronics giant Philips recently reduced its holdings in LG Display ― formerly LG.Philips LCD ― to 13.2 percent from 19.9 percent.
``Speculations was high that LG Display is still struggling to find a new partner to replace Philips, however, I am not concerned over such worries because LG Display is rich in cash,’’ Nam said.
yckim@koreatimes.co.kr
