Hyundai invests in U.S.

Hyundai invests in U.S.

SEOUL (AFP): Hyundai Electronics America (HEA) has bought a subsidiary of AT and T Co. in the largest direct investment by a South Korean firm in the United States, a company spokesman said here yesterday.

HEA, the U.S. subsidiary of Hyundai Electronics Industries Co. of the Hyundai (business) Group, acquired NCR-Microelectronic Products Division (NCR-MPD), its patents and some trade marks for more than US$300 million.

The acquisition, which was sealed in New York on Thursday, represented the largest direct investment by a South Korean company in the United States.

"The acquisition ... is a strategic move to expand Hyundai Electronic's presence in the global semiconductor marketplace from a volume-driven memory business to the high value added IC (integrated circuit) business," HEA chief executive Y.H. Kim said.

The acquisition of NCR-MPD will enable Hyundai Electronics to enlarge the proportion of sales of non-memory chips to 25 percent from the current two percent, a Hyundai spokesman said.