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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (63876)	5/17/2002 2:05:34 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

NEC to Spin-off Semiconductor Business Online staff -- Electronic News, 5/16/2002 e-insite.net NEC Corp. today announced plans to spin-off its semiconductor business operations as part of a corporate restructuring. NEC plans to first establish its semiconductor operations as a new subsidiary company, which it will then spin off with an initial public offering (IPO). At this point, NEC will hold about 70 percent of the company’s stock, allowing the new company to act as a strategic partner to NEC. The new company will be responsible for system LSIs, ICs, discrete and compound semiconductor devices. NEC will also expand Elpida Memory Inc., its DRAM subsidiary with Hitachi Ltd. The Japanese powerhouse has been making increasing efforts to reduce its operating costs and this is the second stage in its restructuring plan. NEC plans to separate its color plasma display panel (PDP) display business from both the color thin film transistor and liquid crystal display (TFT LCD) business. This break up is expected to take place in October. The PDP business will be established as a new subsidiary, consolidated with NEC Kagoshima Ltd. The TFT LCD is to be established as a separate joint venture with SVA Group Ltd. of China. NEC will retain 25 percent of this joint venture. A subsidiary of this joint venture, consisting of NEC’s domestic production bases NEC Akita Ltd. and the color LCD division of NEC Kagoshima, will be 100 percent owned by NEC. NEC also plans to own about one-third of the shares of the automotive electronics business subsidiary it plans to establish with Honda Motor Group. NEC said it also intends to establish its printed wiring board business as a joint venture company with Toppan Printing Co. Ltd., with NEC retaining 49 percent control. NEC’s microwave tube business will be separated into a new 100 percent owned subsidiary, to be positioned as part of NEC defense system business of NEC Networks.