Japan's Renesas Technology Corp will not cut any of its initial product lineup after its planned merger with rival NEC Electronics (6723.T), its president said, casting doubt on the speed of synergies to be gained from the union. Unlisted Renesas, the world's top maker of microc
ontollers, will also discuss further fund-raising options and their necessity with parents Hitachi (6501.T) and Mitsubishi Electric (6503.T), Yasushi Akao said on Friday. The merger, which would create the world's third-biggest chipmaker in terms of sales after Intel Corp (INTC.O) and Samsung Electronics (005930.KS), joins two directly competing companies that use dramatically differing technologies. To benefit from the union and survive any further downturns in the economy, the two must choose from between their many overlapping businesses, analysts say. But that transition is likely to come gradually, as orders rise, boosting Renesas's expected factory usage rate, lessening a sense of urgency to quicken cost cuts. "We would never stop supplying a product for any reason, merger or no merger," Akao said in an interview with Reuters. Renesas' factory usage rate is expected to hit about 60 percent in April-June, up from a little less than 40 percent in the previous quarter, he said. NEC Electronics is owned 65 percent by NEC Corp (6701.T). The two firms aim to sort out details of the merger by the end of July, but executives on both sides have said NEC Electronics will probably absorb Renesas, owned 55 percent by Hitachi and 45 percent by Mitsubishi Electric.
ontollers, will also discuss further fund-raising options and their necessity with parents Hitachi (6501.T) and Mitsubishi Electric (6503.T), Yasushi Akao said on Friday. The merger, which would create the world's third-biggest chipmaker in terms of sales after Intel Corp (INTC.O) and Samsung Electronics (005930.KS), joins two directly competing companies that use dramatically differing technologies. To benefit from the union and survive any further downturns in the economy, the two must choose from between their many overlapping businesses, analysts say. But that transition is likely to come gradually, as orders rise, boosting Renesas's expected factory usage rate, lessening a sense of urgency to quicken cost cuts. "We would never stop supplying a product for any reason, merger or no merger," Akao said in an interview with Reuters. Renesas' factory usage rate is expected to hit about 60 percent in April-June, up from a little less than 40 percent in the previous quarter, he said. NEC Electronics is owned 65 percent by NEC Corp (6701.T). The two firms aim to sort out details of the merger by the end of July, but executives on both sides have said NEC Electronics will probably absorb Renesas, owned 55 percent by Hitachi and 45 percent by Mitsubishi Electric.For further details visit as : http://www.reuters.com/article/technology-media-telco-SP/idUSTKX00626020090529
