Japanese giants in merger talks
Toshiba is in talks to merge part of its system chip business with NEC Electronics’ semiconductor unit.
Based on 2007/2008 sales, the combined businesses could have an annual revenue worth $16.7billion.
NEC said in a statement that each company must prioritise reform and that it would push forward with its own restructuring including cost cuts of $890million over two years and eliminating 1200 contract jobs. Similarly, Toshiba aims to cut costs by $3.3bn in the next business year.
