subject: Himfr.com Reports Nec And Renesas Technology Next Year's Merger That Would Create The World's Third- [print this page] According to foreign media reports, NEC Electronics and Renesas Technology (Renesas Technology), today announced that they will merge in April next year to form the world's third-largest chip manufacturer.
Prior to the merger, NEC and Renesas Technology's parent company will inject 200,000,000,000 both sides (about 2.2 billion U.S. dollars), the new company will be named Renesas Electronics (Renesas Electronics). The two sides said in a statement after the merger, the parent company of Renesas Technology, Hitachi and Mitsubishi Electric will hold the new company 33% and 25% of the shares, while the parent company, NEC Electronics, NEC will hold 31% of the shares. Renesas Technology will serve as president of Chi Mei Thai new company CEO.
The combined new company will occupy in the field of micro-controller, 28% of market share, ranked industry first for the second place competitor Freescale tripled. Micro-controllers are widely used in automotive and consumer electronics, the market size of about 11.1 billion U.S. dollars. U.S. market research firm iSuppli predicts that by 2012, micro-controller market will reach 16.8 billion U.S. dollars.
Micro-controller is a special mission designed specifically for mini-computer, can control the exercise of constant speed of motor vehicles, or for the DVD player remote control.
iSuppli's data show that the Renesas Technology and NEC Electronics in 2008 the combined sales of 128 billion U.S. dollars, the world's third-largest chip maker behind Intel (338 billion) and Samsung Electronics (169 billion). The current world's third-largest chip manufacturer Toshiba, its 2008 sales of 111 billion dollars.
The global economic recession, the chip industry, last year's excess supply of further deterioration, leading chip maker have reported losses, and forced NEC Electronics and Renesas Technology to seek integration of such enterprises. The Advanced Technology Investment Company of Abu Dhabi this month, also said it would spend 2.5 billion Singapore dollars (about 1.8 billion) acquisition of Singapore's Chartered Semiconductor.
NEC Electronics is expected, although the company has reduced the production, research and development and labor costs, but cuts less than the decline in sales, it will be the fifth consecutive loss. The company had said in July this year, ending June 30 of the quarter, for a total reduction of 25,000,000,000 production and R & D costs, and plans to a net loss this fiscal year will be cut by 89%, to 90 billion yen.
Renesas Technology, on a fiscal year there have been losses, the company plans in March 2010 ended the fiscal year, through the integration of production lines, cut wages and reduce the R & D spending and cut costs by way of 80,000,000,000. Akao, said Thailand was in April of this year, Renesas Technology will be profitable next fiscal year.
by: stefasuan
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