Supercomputer Makers NEC, Cray End Dispute

NEC Corp. has agreed to settle a long-standing dispute with U.S. rival Cray Inc. that could open the door for the Japanese company to sell its supercomputers in the United States for the first time in four years. The Tokyo-based electronics maker will invest $25 million in Cray, which also makes supercomputers, and will drop a complaint against duties imposed on NEC supercomputer sales in the U.S. in 1997. Cray will distribute NEC supercomputers in North America and ask the U.S. government to discontinue the dumping duties, which have barred NEC from the U.S. market, NEC said. Seattle-based Cray will have exclusive rights to sell NEC’s SX Series line in North America and nonexclusive rights elsewhere, NEC said. In exchange for its investment in Cray, NEC said it will get 3 million nonvoting, preferred shares of Cray stock.