SEOUL, KOREA - LG Electronics has announced that its board has approved an agreement to exchange LG Electronics' PCB division with its affiliate LG Micron's plasma rear panel division. This restructuring agreement will reportedly improve efficiency and raise equity for both companies.

According to the agreement, the transfer and acquisition will take place on May 1 and will include assets, liabilities and human resources. Accounts receivable, accounts payable, and some real estate will be excluded.

LG Electronics sites the increased efficiency and cost effectiveness of producing both plasma display panels and rear panels together as its reason for the move. LG Micron will reportedly boost its efficiency as well, by producing components in house, once it acquires LG Electronics’ PCB division.

LG Electronics is the largest stockholder of LG Micron. This agreement will increase LG Electronics’ stake in the LG Micron from 36% to 55%t.

On May 1, LG Electronics will transfer $141.1 million of assests to LG Micron, which includes two PCB manufacturing facilities in Chungju and Osan, Korea, as well as property, equipment and machinery.

The agreement will be brought before shareholders of LG Electronics and LG Micron at respective shareholder meetings for approval.

TAIWAN - Notebook PCB supplier HannStar Board has reportedly suspended its investment plans in Vietnam. Citing inadequacies in the local government infrastructure as the reason for the decision, HannStar Board will now look to China for its expansion, with preference for locations near Shanghai and Nanjing, according to company sources.

The company reportedly will also increase manufacturing space in its current China plant by over 1 million square feet for PCB manufacturing, and 50,000 square feet for HDI board manufacturing later this year. The company also reports that it will also increase production capacity in its Taiwan plants by 100,000 square feet.