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: Out-of-patience investors sell off Amazon

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

Out-of-patience investors sell off Amazon

Oct 24, 2014

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

Oct 24, 2014

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

Oct 24, 2014

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

Oct 24, 2014

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 0