. Last Updated: 07/27/2016

Hyundai to Open Chip Plant in Scotland

SEOUL -- Hyundai Electronics, a unit of South Korea's sprawling Hyundai Group, said Tuesday it is planning a $1.4 billion semiconductor plant in Scotland to tap European markets with a new generation of computer memory chips.

The plant would begin production of dynamic random access memory, or DRAM, chips in December 1998 and generate about 1,000 jobs, the company said.

Hyundai's announcement follows LG Group's ?1.7 billion ($1.1 billion) deal in July to make semiconductors and electronic goods in Wales.

"Main items will be 64- and 256-megabit DRAMS, whose demand in Europe is expected to rise sharply from late next year on," said a Hyundai spokesman.

Prices for the widely-used 16-megabit DRAM chips have slumped following a huge glut, weighing heavily on South Korea's electronics firms and forcing them to look abroad for new investment opportunities, analysts said.

The Scotland plant would be Hyundai Electronics' first European investment. The group began construction in February on a $1.3 billion semiconductor plant in the United States.

Hyundai said it selected Dunfermline, about 24 kilometers north of Edinburgh, because of various favorable conditions Britain offered.