The trade union representing most workers at the indebted Hynix Semiconductor corporation in South Korea is threatening to call a strike if a proposed takeover by an US rival goes ahead.

Under the $3.4bn deal announced on Monday, Micron Technology would buy the bulk of Hynix's assets and become the world's biggest maker of computer memory chips.

It would control 40% of global output.

The merger move comes as memory chip prices are recovering from their unprecedented falls, and the union argues that Hynix which is currently the third biggest producer can survive independently.

Creditors of the company have already bailed it out twice and say Micron has promised to keep 85% of the workforce.

From the newsroom of the BBC World Service