Continuing its push into higher margin chip markets, NEC electronics Inc has re-organized existing chip units to focus on system-on-a-chip designs. The former system integration and microprocessor/microcontroller business are to be brought together under the umbrella of the System LSI Division. The division will focus on the consumer, communications, PC, Windows CE and Automotive markets; producing designs ranging from standard components to customized application specific integrated circuits (ASICs).
NEC is expecting that the system-on-a-chip market will be worth $25bn by 2002. A spokesperson for the company said although the SOC sector represented a small portion of the overall semiconductor market, it is a high margin sector. The spokesperson insisted that NEC wants to remain a major force in the memory market but admitted to the volatile nature of the market, saying, when the price is low its a bloodbath.
