Hitachi Ltd. and Mitsubishi Electric Corp. announced Monday that they will set up a joint venture to integrate their semiconductor businesses relating to system LSIs, or large-scale integrated circuit chips.
The deal will create the third-largest LSI manufacturer in the world, after Intel and Toshiba Corp.
The joint venture, which would be set up in about a year, will cover the development, design, production and marketing of system LSI chips, which are expected to come into greater demand as the expansion of mobile phones and digital home appliances continues.