It is being reported that several Chinese LCD and semiconductor manufacturing companies are trying to acquire Korean firms that are already in partnership with Samsung. Business Korea is reporting that about 500 Korean companies, including home and abroad, are in partnership with Samsung. LG and SK Hynix are in partnership with 500 and 1,500 Korean firms respectively, and they are facing a similar threat as well.
According to industry sources familiar to the matter, BOE, which is one of the largest display panel manufacturers in China, made an offer to a Korean driver IC design firm. However, the agreement didn’t materialise and they ended up signing a supply contract. The company is also said to be interested in acquiring fabless semiconductor companies. Prior to this, Tsinghua Unigroup attempted to invest in SK Hynix, but failed.
Apparently, other Chinese electronics firms are trying to acquire or do business with Korean brands through aggressive investments and M&As. The Hualian Group, is currently bidding for Faichild Semiconductor, which has a power semiconductor plant in Bucheon City. Experts say that an increase in the number of Korean firms being purchased by China could pose significant threat to Samsung.