Japan’s NEC Electronics Corp and Renesas Technology Corp are moving ahead with plans to combine, today announcing an April 1, 2010, expected merger date.

NEC and Renesas signed a basic agreement on April 27, and have since been exploring the possibility of a business integration.

With combined fiscal year sales of about $12 billion (1.2 trillion yen), the merged company is expected to rank as the third largest chip company behind Intel and Samsung, based on recent iSuppli Corp rankings. 

The integrated company will focus on its three major product groups: MCUs, SOCs, and discrete products.

NEC Electronics will become the surviving entity when the merger is in place.

A shareholder meeting for the merger’s approval is planned for February 24, 2010. Hitachi Ltd and Mitsubishi Electric Corp -- the two companies that established Renesas as a joint venture in 2003 and new shareholders of the merged company post integration -- will be entitled to vote at an ordinary shareholders meeting of the integrated company, scheduled for June 2010.

By: DocMemory
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