NEC shuffling units

April 2, 2004 – NEC Electronics Corp. reportedly is reorganizing its business units to improve production efficiencies.

The company plans to launch an unnamed unit to focus on 90nm manufacturing for itself and clients, a business currently managed by two separate divisions. Sales for the new unit are projected to be 22 billion yen in 2005.

NEC also plans to consolidate its testing and assembly operations by moving its NEC Yamaguchi unit into its Kyushu Semiconductors subsidiary later this year, which will result in two major domestic facilities.

In addition, NEC has sold various assets, including land, buildings, and facilities leased by its Hiroshima operations to Elpida Memory’s Hiroshima manufacturing subsidiary for approximately 34 billion yen. The deal bolsters Elpida’s prototype development and mass production capabilities for 300mm wafer fabrication, with room for expansion; it does not affect NEC’s 200mm facility on the site.


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