Philips Semiconductors is to seek joint venture participation with another manufacturer for its next microchip plant which could still be located in the UK. An announcement is expected shortly.
A spokesman for the Dutch-owned company dismissed speculation that it was considering a link-up with Korean group Hyundai. But he said: ‘We will go ahead with a joint venture but we’re not saying where or how.’
Hyundai is understood to have been looking for a partner for its planned £1.5bn waferfab in Dunfermline, Scotland. The project was announced last September but has been put on hold because of the Asian financial crisis.
An announcement on the Philips project will be made in the next few months, said the spokesman.
Philips Semiconductors already has joint ventures in microchip manufacturing with SGS Thomson in France and Siemens in Germany.
Philips has been scouring the globe for a suitable location for its next large-scale semiconductor plant. It has been considering sites in Europe, north America and the Asia-Pacific region.
Last year its efforts to locate to a site at Peddimore on the outskirts of Birmingham were thwarted by local conservationists who wanted the land kept as part of the green belt.
* Korea’s LG Electronics launched a recruitment drive last week aimed at taking on 1,000 new staff over the next nine months for its £1.3bn semi-conductor plant at Newport, South Wales.