Further consolidation in handset business as NEC and Matsushita get closer

The President of NEC has announced plans to cooperate with fellow Japanese manufacturer Matsushita (most well known for its Panasonic brand) in the development of mobile phones. He also stated that talks were taking place between the two companies and Texas Instruments.

The two Japanese giants hope that by working together they can take advantage of economies of scale although they intend to maintain their individual brands in the light of tough national and global competition.

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