Japanese computer and electronics giants NEC Corp. and Toshiba Corp., said Tuesday they had launched talks on forging an alliance in the space industry focused on satellite production.
“Our discussion with NEC is under way for possible cooperation in the space industry,” said Toshiba spokesman Kenichi Sugiyama.
“Our cooperation is expected to focus on satellite development and production,” the spokesman said. “But we are not at a stage to disclose details.”
Toshiba and NEC will try to compete with Mitsubishi Electric Corp., Japan’s satellite business leader whose market share in the industry stands at 55 percent, Sugiyama said.
NEC, the second largest in the sector, is strong at developing small satellites, while Toshiba, ranked third, develops parts for larger satellites, antennae and solar batteries.
“We have agreed to sit at the same table,” said Ken Fukuchi, a spokesman for NEC. “We will start discussing details.”
The evening edition of the Nihon Kezai Shimbun said NEC and Toshiba had reached a broad accord with a plan to set up a joint venture in September to rival Mitsubishi Electric’s satellite operations.
The new firm, employing up to 500 workers, will seek foreign partners, the business daily added.
NEC’s annual sales in the satellite industry are estimated at 40 billion yen (364 million dollars), compared with 25 billion yen reported by Toshiba.
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