Renesas Electronics, Fujitsu and Panasonic have entered the final phase of negotiations to merge their semiconductor operations, The Nikkei reported without naming its sources. The companies expect to have a deal by the end of March and sign the final contract in the autumn, the paper said. The joint venture will specialize in the design and development of chips for smartphones and other devices and is backed by cash from Innovation Network Corporation of Japan, a government-backed fund. The companies aim to improve their global competitiveness by spinning off the manufacturing business into a joint venture between Global Foundries and the Innovation Network. The latter is a government-backed fund which is already participating in a similar merger of the small display businesses of Toshiba, Sony and Hitachi.
