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NEC, NEC Electronics, Matsushita, Panasonic Mobile and Texas Instruments Establish New Joint Venture to Develop Communications Platform for Mobile Handsets for the 3rd Generation (3G/3.5G) and Beyond

Development, Design, and Technology Licensing for Global Markets

Jul 27, 2006

TOKYO, July 27 /PRNewswire-FirstCall/ -- NEC Corporation ("NEC"), NEC Electronics Corporation ("NEC Electronics"), Matsushita Electric Industrial Co. Ltd. ("Matsushita"), Panasonic Mobile Communications Co. Ltd. ("Panasonic Mobile") and Texas Instruments Incorporated ("Texas Instruments") today announced that the five companies have signed an agreement to establish a new joint venture company. The company will conduct global development, design, and technology licensing for a hardware and software communications platform (*1) to manage the core communications functions for mobile handsets for the third generation (3G/3.5G) and beyond.
The new company, Adcore-Tech Co., Ltd ("Adcore-Tech"), is scheduled to be established in August, 2006 at the Yokosuka Research Park in Yokosuka, Japan, with approximately 180 employees. The five companies will jointly invest 12.0 billion yen in the new joint venture, with approximately 44 percent held jointly by NEC and NEC Electronics, approximately 44 percent held jointly by Matsushita and Panasonic Mobile, and approximately 12 percent held by Texas Instruments.
As mobile phones become increasingly sophisticated and improved with the integration of music, video, broadcasting and other new technologies for internet and high-speed, high-volume communications, an extraordinary amount of resources are required for their development.
Through this joint venture, NEC and Panasonic Mobile, which have played crucial roles in leading the industry in developing and implementing 3G/3.5G (W-CDMA/HSDPA) technology handsets, will team with communications chip (chipset) manufacturers Matsushita, NEC Electronics and Texas Instruments. This aims at concentration of the technologies and development resources of all five companies, thereby facilitating speedy and efficient development of the increasingly sophisticated communications technology for mobile handsets at 3G/3.5G and beyond, and contributing to the advancement of the 3G/3.5G and beyond mobile handset industry at large.
As a result, NEC and Panasonic Mobile will be able to continue delivering attractive products to mobile operators and users, which stay abreast of advances in communications technologies, and help improve the foundation of the companies' mobile handset businesses.
Mobile handsets based on the new communications platform to be developed by the joint venture company are expected to become available in the fall of 2007.

The investment and operations of the new company will be established as follows:

  1. In addition to investing in the new company, NEC, NEC Electronics, Matsushita, Panasonic Mobile, and Texas Instruments will license communications technology to the new company for 2.5G/3G/3.5G. Based on the technologies licensed, the new company will develop a competitive communications platform for 3G/3.5G and beyond.
  2. The new company will license communications chip technology to NEC Electronics, Matsushita's semiconductor company, and Texas Instruments. NEC and Panasonic Mobile will incorporate chips manufactured based on this technology into their mobile handsets. 
  3. NEC Electronics, Matsushita's semiconductor company and Texas Instruments will also sell these chips to mobile handset manufacturers in Japan and worldwide. 
  4. The new company will license comprehensive solutions, including communications platform and necessary software, system evaluation, and customizing services to mobile handset manufacturers.

 

(*1) Communication Platform All hardware and software covering

 

(1) Basic circuit design for LSIs (2) Software to control basic circuit (3) Communication core to operate on (1) and (2), (4) Software operating as modem to coordinate (1) to (3).