Japanese firms in talks on microchip merger

Apr 16, 2009
Kaoru Yano, President of Japan's electronics giant NEC, at a press conference in Tokyo. Japanese firms Renesas Technology and NEC Electronics are in merger talks to create the country's top chipmaker as they seek to survive the global recession, reports have said.

Renesas Technology Corp. and NEC Electronics Corp. are in merger talks to create Japan's top chipmaker as they seek to survive the global recession, reports said Thursday.

The two companies are in the final stages of negotiations and aim to reach an agreement by the end of April, the Nikkei economic daily and other Japanese media said without naming their sources.

The deal would create the world's third largest chipmaker.

With the hitting the industry hard, the two firms see a merger as key to their survival, the Nikkei said. The tie-up would likely be completed by April 2010, it said.

With combined annual sales of more than 1.2 trillion yen (12 billion dollars), the new entity would replace Japanese rival Corp. as Japan's top semiconductor maker, it said.

The world's biggest chipmaker is Intel Corp. of the United States, with Co. of South Korea ranked second.

Renesas, the second-biggest Japanese chipmaker, is a joint venture between Hitachi Ltd. and Mitsubishi Electric Corp. NEC Electronics, ranked third in Japan, is a subsidiary of leading high-tech company NEC Corp.

Both companies expect to log net losses in the year to March.

Neither company would confirm the report.

"Nothing has been decided regarding business reorganisation," an NEC Electronics company spokeswoman said, while declining to say whether the firm was in talks with Renesas.

A Renesas Technology spokeswoman also declined to comment on whether talks were under way.

(c) 2009 AFP

Explore further: Big costs drag AT&T to 4Q loss, but revenue up 4 percent

add to favorites email to friend print save as pdf

Related Stories

Toshiba, Sharp mull 'solar power tie-up'

Mar 27, 2009

Japanese consumer electronics giants Toshiba and Sharp are in talks on a possible tie-up in the solar power generation field, the companies said Friday.

Japan's Sharp sees deeper net loss

Apr 08, 2009

Japanese electronics giant Sharp Corp. said that it had fallen deeper in the red than expected in the past year, suffering its first-ever loss due to the economic downturn.

Recommended for you

Microsoft profit dips as revenue rises (Update)

Jan 26, 2015

Microsoft on Monday reported that its quarterly profit dipped but revenue increased in a sign that it is adapting to lifestyles centered on mobile devices and cloud services.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.