Toshiba, NEC Reported in Deal to Produce Chips

Toshiba Corp., the world’s No. 2 chip maker, and rival NEC Corp. have agreed to form an alliance to develop semiconductors designed to cut power consumption in personal computers and mobile phones, Nikkei English News reported.

The companies plan to begin mass-producing new magnetic random access memory, or MRAM, chips by 2005, the agency reported, citing unidentified company officials.

It’s the first time Japan’s top two chip makers have forged such an alliance. Neither firm’s officials could be reached for comment.

The global chip market has yet to rebound from its worst year ever in 2001. Japan’s five largest chip makers posted combined losses of $13 billion in the 12 months ended in March.