TOSHIBA is in talks with NEC to merge part of its chip operations as both outfits have trouble with falling demand and prices.
It is likely that Toshiba will spin off its system chip operations and merge them with NEC's own semiconductor operations. Neither side are commenting on the rumours, but analysts think that industry consolidation like this is inevitable.
Toshiba's chief executive, Atsutoshi Nishida too many chip makers are slugging it out in Japan and that they need to consolidate to win globally. µ