Surgical Move in Semiconductor Market

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Surgical Move in Semiconductor Market

The world semiconductor market is facing huge fluctuations. Following the merger of Texas Instruments and Micron, Korea's LG and Hyundai decided to merge their semiconductor companies as part of the nation's recent series of 'big deals.' If LG and Hyundai are successful in this merger, they will become the second biggest semiconductor supplier in Korea
In the past three years, oversupply has caused a major drop in the price of semiconductors. Japanese and European semiconductor firms have responded by reducing their size and modifying their sale strategies. The Taiwanese, in particular, are prudently considering even abandoning business in this market. For example, the country's Acer and Power Chip are transferring memory-oriented systems to the more lucrative non-memory line.
Domestic companies including Samsung Electronics are glad for this change anticipating that they will have more opportunities to sell memory semiconductors in the near future. Micron of the US was world number five in DRAM sales with a 7.9% share. Its merger with number seven Texas Instruments (6.2%) for 800 million dollars in June now makes it number three in the world. Hitachi of Japan will be closing their American factory before the end of this month and Mitsubishi will be closing their factory there in November.
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