Toshiba, NEC extend China links
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Toshiba is already one of Japan's biggest exporters of consumer electronics to global markets
Story Tools
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TOKYO, Japan -- Japanese high-technology leaders Toshiba and NEC are extending their links with Chinese counterparts to cut costs, a report Wednesday said.
The Nihon Keizai business daily said Toshiba, Japan's largest chipmaker, was linking with China's largest software developer, Neusoft Corp, based in Shenyang.
It said the two would work on software for digital home appliances such as digital televisions and DVD recorders.
China is expected to begin digital terrestial broadcasting in 2010. The DVD recorders will be exported to markets including the United States and Europe.
The Japanese business daily said NEC, Japan's largest cell-phone maker, was partnering with Shenzhen-based Huawei Technologies Co, China's largest maker of communications devices.
Network devices
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Last October NEC began shipping camera-equipped phones to China
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It said NEC had already begun selling equipment made by Huawei to customers in Japan and elsewhere in Asia. The products include network devices such as routers and equipment for third generation (3G) mobile phones based on the CDMA standard.
Last October NEC said it was starting to ship camera-equipped mobile phones to China. It said it aimed to ship one million units in the next business year. (Full story)
Up till now, most Japanese technology ventures with Chinese partners have been for the production of home appliances. Examples are Sanyo with Haier Group, and Matsushita Electric Industrial with TCL Corp.
But the Nikkei says the new alliances forged by Toshiba and NEC show that partnerships with China are moving into high-technology fields.
Shares in Toshiba are 0.26 percent lower in Wednesday morning trade at 381 yen, while NEC is up 1.29 percent to 471 yen. The broader market, measured by the Nikkei 225 average, is 0.35 percent higher at 8,723.31.
Last month, Toshiba posted a seventh quarterly net loss in a row. But the company said it would likely see a net profit of 23 billion yen ($194 million) for the year to March 31, after last year's loss of 254 billion yen ($2.12 billion).
