Japanese NEC, Casio, and Hitachi confirmed on September 14 that they will merger their mobile phone operations following weeks of talks, with aims to reduce costs, unify technology assets, know-how and resources, and strengthen their foothold in both domestic and international markets, according to a press release by NEC on September 14.

The JV, to be named NEC Casio Mobile Communications, will become effective in April 2010 and will be located at Kawasaki City, Kanagawa prefecture, Japan, the original NEC Tamagawa plant. The total of investment is initially valued at around one billion Yen (US$10.9 million; US$1= 91.4 Yen) and is expected to further increase to five billion Yen (US$54.7 million) by the end of June 2010. By then, NEC will hold a 70.74% stake in new JV, Casio 20%, and Hitachi 9.66%, according to the same source.

Under the tie-up, NEC will spin off of its mobile phone business to merge with Casio Hitachi, a JV between Casio and Hitachi in 2004. After the merger, NEC Casio Mobile will become the second largest mobile phone maker in Japan in terms of market share, following Sharp. The new JV will employ a total of 2,200 employees, of which 506 currently work for Casio Hitachi.