Three Japanese tech companies could join forces in the chip-making sector, hoping to reverse a worsening financial situation amid globally increasing competition.
Panasonic, Renesas Electronics and Fujitsu will create a new company that will also get government support through financial fund Innovation Network Corp. of Japan, in an effort to save the Japanese chip industry, according to press reports still unconfirmed by the companies.
The new company will produce chips for cars, smartphones and other electronics and its annual sales could reach Y500 billion ($6.5 billion).
Panasonic has recently announced it would report the worst losses in its history, of up to Y780 billion, in the fiscal year that ends in March 2012. Renesas will also go in the red with a projected loss of Y57 billion, while Fujitsu’s profit will go down 36 percent to just Y35 billion.
“We are considering various plans on the growth strategy of semiconductor business, but we don’t have anything to announce at this point,” said a Panasonic spokesperson.