NEC Electronics and Renesas to Merge
Source/Type: Reported News

Author: CompoundSemi News Staff

April 27, 2009... NEC Electronics, Renesas Technology Corp. (Renesas), Hitachi, Ltd., and Mitsubishi Electric Corporation today agreed to enter into negotiations to integrate business operations at NEC Electronics and Renesas. The resulting company will be labeled NEC. NEC Electronics and Renesas provide a wide variety of semiconductor solutions, primarily specializing in microcontroller units (MCUs). NEC notes that it and Renesas have agreed to explore the possibility of business integration in order to further strengthen their business foundations and technological assets while increasing corporate value through enhanced customer satisfaction. NEC says that it and Renesas will continue to focus on the field of system-on-chip (SoCs) products. NEC Electronics is a leading producer of SoCs for digital consumer electronics, while Renesas is a well established manufacturer of SoCs for mobile phones and automotive applications. NEC says that by reinforcing the each company's respective strengths and development resources the new company will provide globally competitive SoC products.

According to NEC, the integrated company, which will become the world's third-largest semiconductor business, will reportedly have three major product groups, MCUs, SoCs, and discrete products. NEC says that it and Renesas will each execute structural reform plans before the merger in order to strengthen their business frameworks. Then, the companies will integrate their operations to achieve synergies and boost profitability. NEC Electronics News Release

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