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NEC Electronics, Renesas Technology in semiconductor merger
NEC Electronics Corp is in talks with Renesas Technology Corp to merge their semiconductor activities, thus creating Japan’s biggest chipmaker – and the world's third largest, behind the US’ Intel Corp and Korea's Samsung Electronics – with annual sales in excess of ¥1.2 trillion ($12 billion), reports the Nikkei newspaper.
Renesas, a semiconductor venture of Hitachi and Mitsubishi Electric Corp., and NEC Electronics, the chip unit of NEC Corp., aim to reach an agreement this month and combine their operations by April 2010, the Nikkei newspaper reports.
NEC Electronics forecast in January its net loss will probably reach ¥65 billion ($655 million) for the 12 months ended March 31, its fourth straight year of deficits, reports Bloomberg. The same month, Renesas forecast a ¥206 billion ($2.08 billion) net loss.
Renesas is consolidating production lines, cutting wages and reducing research spending to slash. NEC Electronics is cutting 86% of its temporary workforce, slashing research spending and closing productions lines as well.
Story filed 16.04.09
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