SEOUL -- Another roadblock has emerged in Micron Technology Inc.'s proposed $3.4 billion deal to acquire Hynix Semiconductor Inc.'s memory chip business.
The Federation of Korean Trade Unions (FKTU), the largest labor group in South Korea, will go on strike to support Hynix's own union, which plans to protest against the proposed Hynix-Micron alliance, according to reports from the Dow Jones news wire.
The threat of semiconductor strikes is a familiar situation in Korea, where union workers at LG Semicon attempted to block the creation of Hynix when their company was merged into Hyundai Electronics three years ago. In February 1999, LG workers staged a 15-day walkout to protest the sale, but returned to work after the company agreed to pay a six-month wage bonus in return for the union to accept the merger with Hyundia.
Under a non-binding memorandum of understanding (MOU) announced on Monday, U.S.-based Micron said it would buy Hynix's memory chip business for 108.6 million shares of stock, valued at over $3 billion, and a $200 million investment(see April 22 story). The deal would turn Micron into the world's largest DRAM maker, moving ahead of South Korea's Samsung Electronics Co. Ltd., according to analysts.
Following the announcement, the union representing South Korea's Hynix said it may call a strike to protest against the proposed agreement with Micron.
Now, the FKTU is getting into the act. "We will do everything to stop Hynix's board of directors and creditors in approving the sale plan, regardless of the strong opposition from civil organizations and shareholders," FKTU spokesman Lee Sang-yeon told Dow Jones.
Hynix's labor union comes under auspices of the FKTU, which claims 956,342 members from 3,374 union groups, the report said. About 7,500 of Hynix's 13,000 employees are union members, it added.
RSS
Digital
10 emerging technologies to watch:
EE Times has compiled a list of emerging technologies that we think will be worth watching out for in 2010. Biofeedback or thought-control of electronics are among the contenders.
Hot applications in 2010:
We've compiled a list of 10 technology applications you should watch for in 2010, ranging from e-book readers to 3-D TVs. We examine the features that make these apps so compelling as well unresolved issues.
Top 25 predictions for semis in 2010:
2010 is just beginning to unfold in the electronics industry. Looking into our crystal ball, we have released our own chip forecasts--and other predictions--for 2010.
Seven things to fix in 2010:
The editors of EE Times came up with their own informal list of things we hope engineers fix in 2010, spanning everything from nano-lithography to space travel. What do you want to see get done this year?
'09 moves that are shaping the future:
This was a brutal year, but the industry gets a nod for showing grace under fire. Here's our Top 10 guide to the coming year, illustrating what to expect in 2010.
10 CEOs out in 2009:
It's been a tough year for the global electronics industry and CEOs. We survey the dismissal of 10 industry CEOs during the first three quarters of 2009 and what's ahead for the rest of the year.
Notable women in microelectronics:
There is no better time than a global economic recession to examine the keys to successful corporate governance. So, EE Times has compiled an international list that celebrates women who are business and technology leaders in semis.
EE Times updates Silicon 60:
Seventeen companies have been added to the lastest version of our Silicon 60 list of emerging startups. Forty-three companies survived as emerging companies that are still worth watching.
RSS| 
Digital| 
Mobile
