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Technical Insight

NEC plans fabless model for spin-off (News from Japan)

NEC has fleshed out details of the planned spin-off of its Compound Semiconductor Device Division later this year (see Compound Semiconductor February 2001, p4). Effective October 2001, the new company will operate on a "fabless semiconductor company" business model. Manufacturing will initially be performed at current NEC and contractor facilities. Upon divestiture, the new company will be free to pursue new manufacturing relationships. The spin-off will be headquartered in Kawasaki, Kanagawa Prefecture in Japan, with R&D development facilities in Kansai. First year sales are expected to amount to around $1.02 billion. NEC will retain full ownership of the new enterprise, with an initial public offering planned within two years.
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