Intel tipped as unlikely saviour for Hyundai's Scottish chip plant

Intel is an unlikely white knight for Hyundai's seemingly doomed semiconductor facility in Fife, according to industry watchers.

It has been reported in the Korean press and UK newspaper The Times on Wednesday that the world's largest chip-maker is about to save the 2,000 person operation, and manufacture 256MB memory chips, by either leasing the plant or entering into a joint operation with Hyundai.

The two companies declined to confirm or deny the reports.

An Intel spokesman said: "We're not really in the same business, but when people start looking around for white knights, it's unsurprising we get mentioned."

However, Joe D'Elia, Gartner Group microprocessor analyst and associate director, commented: "We find it incredulous that the association [between Intel and Hyundai] has been made. It would only make sense if Intel was looking at making some other kind of product."

Others have noted that Intel has invested in a Samsung facility in the US, but D'Elia said that "the circumstances were different with that deal".

A Hyundai spokeswoman declined to comment on the situation in Scotland, but admitted the company is involved in various negotiations with the goal of boosting its ailing chips business.

Siemens is also looking for a company to step in to save its Tyneside semiconductor manufacturing facility. However, a UK government-backed task force announced last week is thought to stand little chance of putting together a rescue package.