Feeds

NEC spins out chip biz

Reorg Part 2

  • alert
  • submit to reddit
ComputerWire: IT Industry Intelligence

NEC Corp kicked off phase two of its restructuring yesterday, announcing plans to spin off its semiconductor operations into a separate company.

The Japanese electronics giant said it will establish the new silicon-based subsidiary by November 2002, and will launch an IPO of 30% of its stock as soon as possible. The new arm will include LSI, ICs, and discrete devices. The unit will have 25,000 employees and turnover of around JPY700bn ($5.5bn).

Other units of the NEC Electron Devices business will "advance reforms by proactively utilizing the capital market and third party investment, with NEC planning to eventually become the minority shareholder."

This means joint ventures for a variety of businesses. NEC's DRAM business has already been spun into the Elpida partnership with Hitachi. The electronics components business is being spun into a new company with Tokin Corporation; the TFT-LCD business is being put into a joint venture with SVA Group Ltd; the PDP business is being spun out and a partner is being sought; the printed wiring business moves into a joint venture with Toppan Printing Co Ltd; the automotive electronics business will be spun into a joint venture with Honda Motor Group.

© ComputerWire. All rights reserved.

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.