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National Semi Signs Marketing Deal With NEC

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From Associated Press

National Semiconductor Corp. says it has signed a pact with NEC Corp. to sell one of the Japanese company’s leading-edge computer memory chips and to explore deals in marketing, manufacturing and technology.

The initial agreement between the two electronic giants covers Tokyo-based NEC’s high-volume SRAM chips--a static random access memory device with 256,000 bytes of memory.

“This agreement broadens our memory products portfolio to include SRAM products required by manufacturers of a variety of communications products,” John Hekking, vice president of National Semiconductor’s memory division, said Friday.

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Hajime Sasaki, vice president of NEC’s semiconductor group, said the agreement will contribute to the company’s memory products business, “but more important, it will promote NEC’s policy of international cooperation.”

National Semiconductor said it would begin offering the NEC memory devices in July.

“It’s just one more step in the partnering in the semiconductor industry,” said analyst Daniel L. Kleskin of Prudential-Bache Research in San Francisco. “Texas Instruments and Intel also are selling Japanese chips. It’s a recognition by them, and others, that a semiconductor company can’t be all things to all people. But they need to provide a full line to their customers, so it makes sense to work with other companies to provide products they don’t have.”

Kleskin said the National Semiconductor-NEC pact “can be a win-win deal.”

“There’s not a high margin of profits for National because NEC has to make a profit, but the risk is minimal because they don’t have to build a plant to make the chips,” he said. “For NEC, which is about a $5-billion company, it’s a very small deal. . . . But it shows a willingness to work with American companies.”

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