It has been found that Chinese companies in the LCD and semiconductor industries are trying to acquire Korean firms in partnership with Samsung Electronics and SK Hynix as well as technical engineers.
According to industry sources, BOE, one of the largest display panel manufacturers in China, recently made an offer to a Korean driver IC design firm. They failed to reach an agreement and signed only a supply contract. “It is said that BOE is looking to invest in a number of other fabless companies as well,” said an industry insider, adding, “Rumor has it that BOE will take over some of them, as is the case with the other Chinese electronics manufacturers that are trying to buy or do business with Korean firms by means of aggressive investment and M&As.”
The Hualian Group, in the meantime, is currently bidding for Fairchild Semiconductor with Hua Capital Management. If the group takes Fairchild, its power semiconductor plant located in Bucheon City, Gyeonggi Province will end up in the hands of Hualian. Earlier, the Tsinghua Unigroup attempted to make an equity investment in SK Hynix but failed.
At present, the number of Korean firms in partnership with Samsung Electronics is about 500 at home and abroad. The numbers amount to more than 1,500 for SK Hynix and approximately 500 for LG Display. Experts point out that an increase in the number of Korean firms purchased by China could pose a significant threat to Samsung Electronics and the like.