SemiBuzz: NEC, Renesas in merger talks

Reports claim that Renesas Technology Corp. and NEC Electronics Corp. are in merger talks to create Japan's top chipmaker in a bid to survive the global recession.

This is according Agence France Presse, which cited Nikkei and other Japan media as saying that the two companies are in the final stages of negotiations and aim to reach an agreement by the end of April.

The deal would create the world's third largest chipmaker.

With the on going economic downturn, NEC and Renesas see a merger as key to their survival, according to Nikkei. The possible, which could create the third largest chipmaker, is likely be completed by April 2010, the report said.

Neither company confirmed the report. An NEC spokeswoman commented that nothing has been decided yet regarding the company's business reorganization but declined to confirm whether the firm is in talks with Renesas. A Renesas spokeswoman also refused to comment on the merger rumors.