Will Japanese semiconductor companies form a massive new memory IC
conglomerate? Last month, Hitachi and Mitsubishi said they would merge the bulk
of their semiconductor operations. Now, reports have it that NEC and Matsushita
may joint the join venture in what would create a huge new semiconductor
conglomerate.
The move comes in reaction to the expected merger of Micron and Hynix, which
will create the world's largest memory IC producer. Apparently the Japanese
companies are feeling compelled to counter the Micron move in order to remain
competitive in the battle for economies of scale.
Also helping push the Japanese companies into a joint venture is the dire
conditions of the Japanese economy and the lack of resources to invest in
expensive new IC research, plants and equipment. Meanwhile Fujitsu is also in
talks with Toshiba about possible co-operation in semiconductors.