Diagnosis: Supersize

Dennis Robert Redmond dredmond at efn.org
Thu Mar 28 17:07:43 PST 2002


On Thu, 28 Mar 2002, Charles Jannuzi wrote:


> What, DRR, do you make of the GM takeover of Daewoo? Highly subsidized by S.
> Korea, isn't it?

One of GM's smarter moves; it'll cost them a bundle, maybe half a billion or so, but they've had no luck cracking the East Asian market. Also, with Hyundai snapping up Kia, there's no down side in terms of tech losses: Daweoo didn't have much of an indigenous production base. Daewoo will become the Opel of East Asia: a useful prop to keep Hyundai honest in their home market.

More significant is Micron's buyout of Hynix. This is very un-rentier-like behavior by Micron, which is wisely going for global market share and actually thinking strategically about the 21st century. Also, note how Philips snagged a huge contract with Dell, and how TSMC, Philips' good buddy, is gearing up for 300mm payola.

-- Dennis



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