Korean giant LG was building a £1.4bn semi-conductor plant in Newport, South Wales - one of the UK's biggest ever investments.

But, last week a deal emerged which observers fear may threaten the plan.

The LG plant was due to provide up to 2,000 jobs

Under pressure from the far eastern economic turmoil, LG was forced to merge its semi-conductor operations with rival Hyundai, which was also in the process of building a new semi-conductor factory in Scotland.

It is feared Hyundai may put its massive £2.4bn Dunfermline plant into production but scrap the Newport operation plans.

The Welsh Office is preparing to make an announcement on the future of the LG plant.

Work on the building had begun when the Asian economies were plunged into crisis last year.

At the same time, oversupply in the semi-conductor market saw worldwide chip prices collapse, and construction work on the plant was suspended.