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NEC and Hitachi merge DRAM ops

Japanese alternative to throwing in the towel

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NEC and Hitachi are pooling their DRAM operations into a new joint venture company. This will design, build and flog memory chips under a single, unified brand. The Japanese giants are committed to staying in the DRAM game. But they are too small to play on their own. By huddling together, NEC and Hitachi reckon they can ride out cutthroat competition and massive consolidation in The DRAM industry. The duo are gunning for a joint market share of more than 20 per cent. At the same time they anticipate significant cost savings. But will it be enough to stem their heavy DRAM losses? ®

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