Japanese electronics giants in talks to form chip firm

0 Comments | AFP, September, 2005

TOKYO (AFP) — Hitachi, Toshiba and other Japanese electronics firms are considering setting up a new firm to produce system chips in a joint effort to fight overseas rivals, a newspaper reports.

Among other partners were Panasonic brand maker Matsushita, NEC Electronics and Renesas Technology, a joint venture of Mitsubishi Electric and Hitachi, the Nihon Keizai Shimbun said.

Participants were in final talks to invest a total 200-300 billion yen (1.8-2.7 billion dollars) in a chip foundry, with production of made-to-order system chips developed by each firm due to start in 2007, the report said.

Howerver, the companies played down the report, saying that although such a proposal had been floated in the past, an agreement was some way off.

"It is a...