NEC Electronics and Renesas merge

The merger will result in the formation of the third largest chipmaker in the world – behind Intel and Samsung Electronics. The new company will have three major product groups, mcus, SoCs and discrete products. The integration of the mcu suppliers, will enable the new company to focus on SoCs products and there are plans to enhance the competitiveness of analogue and discrete products that generate synergies with mcus. In a statement, it was announced: "In order to address the ongoing challenges of the current economic downturn, NEC Electronics and Renesas will each execute structural reform plans in order to strengthen their business frameworks. Upon completion of these structural reforms, the two companies will integrate their operations to achieve synergies and boost profitability. This integration will result in the establishment of a powerful new semiconductor company that is capable of consistently achieving high earnings and maintaining the ability to withstand changing market conditions."