Renesas, Fujitsu, Panasonic may merge systems chip ops

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

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.

Topics: Hardware, Storage


Elly grew up on the adrenaline of crime fiction and it spurred her interest in cybercrime, privacy and the terror on the dark side of IT. At ZDNet Asia, she has made it her mission to warn readers of upcoming security threats, while also covering other tech issues.

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.