Nakamichi Peripherals to Spin Off Tape Backup Unit

Nakamichi Peripherals Corp., a computer products subsidiary of Tokyo-based audio giant Nakamichi Corp., said Wednesday that it is spinning off its mini-cartridge tape manufacturing business at the end of July.

The new company, Summit Memory Systems Inc. in Scotts Valley, will make tape backup systems for personal computers.

The systems serve to back up hard disk drives in case of failure or theft.