Renesas, Fujitsu, and Panasonic are reported to begin discussion over integrating system chip operations, Nikkei business daily reported on February 7, 2011. At the initial phase, it is reported that the tree companies will spin off their respective system chip design and development units and then set up a new company. Through leveraging the telecommunications, image processing, and other technologies of the three parent companies, the new company is projected to develop system chips for use in automobiles and electronic devices. A basic agreement is expected to be reached by the end of March 2012, aiming to create the company by the end of this year. The government-backed Innovation Network Corporation of Japan is reported to provide capital injection for the project.