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To: Timothy Liu who wrote (7030)9/9/1998 11:20:00 PM
From: MileHigh  Read Replies (1) | Respond to of 93625
 
TOKYO (Nikkei)-NEC Corp. and Lucent Technologies Inc. of the U.S. reached an agreement Wednesday to cooperate in developing system chips for advanced communications equipment and digital consumer electronics.

Under the tie-up, NEC will provide Lucent with the memory technology necessary to develop the chips and Lucent will consign production to NEC.

The agreement covers DRAM system chips, which are regarded as the big growth area in the market. Currently, microcontrollers and DRAMs usually have to be installed separately in electronics equipment.

The system chip market is expected to be worth an annual 4 trillion yen by 2001, up from 800 billion yen at present. DRAM system chips are expected to account for 1 trillion yen in sales by the early 2000s, up from the current 100 billion yen.

Major semiconductor makers at home and abroad have been forging development tie-ups since last year, but this is the first to include production.

(The Nihon Keizai Shimbun Thursday morning edition)