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Reneasas, Fujitsu, Panasonic may merge systems chip ops

By , ZDNet Asia on February 8, 2012 

 

Summary

Japanese chip giants in talks to create new company manufacturing system chips with parent companies' capabilities; basic agreement terms expected in March.

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Three Japanese hardware giants Renesas Electronics, Fujitsu and Panasonic are reportedly in talks to integrate their system chips operations.

According to Japanese newspaper Nikkei in a report Tuesday, the new company will develop system chips--which is the brain of electronic devices and automobiles--using its parent companies' expertise in image processing, telecommunications and other technologies.

The step aims to create a globally competitive chipmaker which will be important for survival in the chip industry. With this merger, Toshiba will be the only other Japanese player to not have merged.

For a start, the three companies will spin off their system chip design and development divisions to create a new company, the Japanese newspaper said.

A basic agreement is expected to be established by end-March, with the aim to create a merged entity by end-2012. The project is likely to receive grants from government-backed investment funds Innovative Network, said Nikkei.

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