News Article
Japanese IC merger talks
Reports in Japanese media suggest that two Japanese chipmakers are discussing a possible merger.
IC manufacturers Renesas and NEC are apparently holding discussions about a possible merger between the two Japanese companies that would create the world’s third largest chipmaker. According to media reports the two companies are discussing the possibility in hopes of weathering global economic concerns. If the deal goes ahead it will cause a major shake up of the Japanese industry as the new company will create competition strong enough to have local competition considering similar moves.
Reports suggest the Japanese government welcome the move which has a rumoured deadline of 2010 to take effect. The second and third ranked Japanese chipmakers as a combined effort would easily surpass local competition. On current sales would sit closely to South Korea’s, Hynix’ output of 6.8% of the global market. This is still a long way form USA’s Intel with a global share of 13.3%.
The companies are expecting combined losses of 265 billion yen for 2008 for semiconductor related activities. Both companies have been executing capital saving programmes to deal with the losses and any merger would see a rationalising of resources for the new venture.
Reports suggest the Japanese government welcome the move which has a rumoured deadline of 2010 to take effect. The second and third ranked Japanese chipmakers as a combined effort would easily surpass local competition. On current sales would sit closely to South Korea’s, Hynix’ output of 6.8% of the global market. This is still a long way form USA’s Intel with a global share of 13.3%.
The companies are expecting combined losses of 265 billion yen for 2008 for semiconductor related activities. Both companies have been executing capital saving programmes to deal with the losses and any merger would see a rationalising of resources for the new venture.
