NEC Corp. said Tuesday it will dissolve its two in-house companies and merge their operations in nine business divisions to cope better with growing overlap between the computer and telecommunications markets.

The divisions will deal with such sectors as system services and mobile infrastructure, the major electronics firm said.

In April 2000, NEC formed three in-house companies covering the fields of computers and system architecture, telecom and networks, and semiconductors and electronic devices.

However, the in-house semiconductor company was scrapped in November when NEC established a wholly owned subsidiary to take over the loss-making semiconductor-related business -- excluding dynamic random access memory production.