Three Japan Electronic Giants Joining Forces in Chip-Making Merger

Three of Japan’s biggest electronics companies are to join forces in a chip-making venture, according to reports, days after a swathe of dire results from a sector struggling to compete globally.

Panasonic, which earlier said it expected to lose more than $10 billion this year, is set to hook up with Renesas Electronics and Fujitsu as they look for economies of scale in an increasingly difficult marketplace.

The three companies will spin off their system chip design and development divisions to create a new company in an effort to ensure the survival of the Japanese chip industry, the Nikkei business daily and Kyodo news said.

Read the rest of the story: Japan electronic giants eye chip merger: reports.

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