Asia Express - East Asian ICT
Hitachi, Toshiba, Renesas to Abandon Joint Chip Production Plan
June 09, 2006
According to a recent report by the Nihon Keizai Shimbun, Hitachi, Toshiba, and Renesas are likely to abandon their joint chip production plan. The three firms had set up a planning company in January with the aim of jointly manufacturing advanced system chips with 65nm production technology, in order to lower costs and compete with Taiwanese and Korean chipmakers. The three parties, however, failed to reach agreement on issues like the transfer of technicians to the joint venture. The companies were also facing the prospect of insufficient production volume to make profits. Responding to the report, Hitachi said the three firms will make a final decision on the future of the venture by the end of June.