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Fujitsu, Panasonic, Renesas said teaming on chip design

updated 04:15 pm EST, Tue February 7, 2012

Three Japanese to merge chip-making business

Three large Japanese electronics makers are involved in talks on merging assets to build computer chips. Renesas, Fujitsu and Panasonic will at first spin off their separate chip design and development divisions to create a joint company, according to Japan's Nikkei newspaper (login required). The three are doing so in order to better compete in the industry for devices and vehicles.

A working contract is expected to be readied by the end of March and the new company formed before year's end. A government-backed investment fund such as Innovation Network Corp or INCJ may add a significant amount of capital to the merger.

Toshiba will continue on making chips on its own, and be the sole other Japanese chipmaker for these industries. Japanese chipmakers lack enough cash to make advanced chips and the orders are small and for a diverse range of uses.

The deal hasn't been made official by the companies allegedly involved, however.



By Electronista Staff
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