Toshiba, Fujitsu, NEC Elec in talks to develop chips

Berita IT

Japan's Toshiba, Fujitsu and NEC Electronics, are in talks to jointly develop advanced 32-nanometre chips to better keep up with rivals, the three companies have said.

The companies aim to set up a joint venture to mass produce chips used in flat TVs and other high-power home electronics as early as 2010, with Toshiba expected to hold a leading non-majority share, the Nikkei business daily said the same day.The joint venture idea and other schemes have been discussed but nothing has been decided, the three companies said."If this is all that's being talked about, it's not enough," said Macquarie analyst Yoshihiro Shimada. "They need to spell out how they will work with technological standards being set by TSMC and IBM, and they need to start developing and manufacturing chips together now, not wait until 2010."Chip makers are racing to halve the production cost per function of a chip every year or two -- a trend known as Moore's Law, named after a co-founder of Intel Corp. Samsung Electronics, IBM, Chartered Semiconductor Manufacturing, Infineon Technologies and Freescale Semiconductor said in May they would work together on 32-nanometre chips. A nanometre is a billionth of a metre.STMicroelectronics, which on Tuesday said it plans to work with IBM to develop next-generation chips, may also join the group, according to Gary Patton, vice president of IBM's semiconductor research and development centre.Such moves have worried Japanese chip makers, which have been talking about but not acting on how to share the estimated 100-200 billion yen (US$830 million-US$1.66 billion) costs to develop the new chips, which would require less power to run more applications on cellphones, PCs and other electronics.Toshiba, NEC Electronics and Sony. had previously teamed up to develop chips with 45 nanometre features.Toshiba was the world's No.4 maker of chips in terms of revenue in 2006, NEC Electronics ranked No.11, while Fujitsu ranked 27th, according to research firm iSuppli.Shares of Toshiba were down 0.3 percent, while Fujitsu fell 1.3 percent and NEC Electronics dropped 1.7 percent at 0152 GMT, compared with Tokyo's electrical machinery subindex, which fell 1.64 percent.