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*****For immediate use July 25th, 2002

NEC Announces Name and Leadership Team of New Semiconductor Company


TOKYO, July 25, 2002 - NEC Corporation ("NEC") (NASDAQ: NIPNY, FTSE: 6701q.l, TSE: 6701) today announced that as part of the NEC Group business reorganization announced in May, its semiconductor business will be separated from NEC and transferred to a new company named "NEC Electronics Corporation" to be incorporated on November 1, 2002. Kaoru Tosaka, Senior Vice President, Member of the Board, and Company President, NEC Electron Devices, of NEC will be appointed President of the new company.

Concentrating its management resources on system large-scale integration (LSI) business, the new company will strengthen its global competitiveness, expanding its business as a specialist enterprise that empowers its global customers by providing semiconductor solutions for high-end system needs.

Improving customer satisfaction will be the fundamental goal of all management decisions and this will be thoroughly embedded in the "pull-type operation" style adopted by the new company, where the customer is the starting point of all business activities - sales and marketing, product development, and manufacturing.

Although NEC will initially hold 100% ownership of the new company, to ensure it evolves as an enterprise that holds a strong global competitiveness, it is planned that the new company will conduct an initial public offering (IPO) as quickly as possible.

Outline of the new company

Outline of NEC Electronics Corporation
Company name: NEC Electronics Corporation
Scheduled Date of Incorporation: November 1, 2002
President: Kaoru Tosaka
Major operations: Research, development, manufacture, sale and services of semiconductors (except for general purpose DRAMs)
Head office: Kawasaki City, Kanagawa Prefecture, Japan
Stated Capital: 50 billion yen
Number of shares to be issued
at the time of establishment:
100 million shares of common stock
Net sales: Approximately 700 billion yen
Employees: 24, 000
Japan - 18,800
Overseas - 5,200

Management team and system
At the time of the incorporation of the new company on November 1, 2002, the new company will have the following four directors and three corporate auditors. To facilitate greater flexibility in line with the nature of the global semiconductor market, the small and focussed Board of Directors, combined with the introduction of a company officer system, will ensure speedy decision-making, clear lines of responsibility and increasing management transparency. Additionally, the new company will, by the time of its planned IPO, have outside directors to build a comprehensive management platform that can effectively respond to strong cyclical market fluctuations.

Position at the new company Name Current Position
President Kaoru Tosaka Senior Vice President and Member of the Board and Company President, NEC Electron Devices, of NEC
Senior Executive Vice President and Member of the Board Kyoji Yamamoto Senior Vice President, NEC Electron Devices and Company Deputy President, NEC Electron Devices, of NEC
Senior Executive Vice President and Member of the Board Hirokazu Hashimoto Senior Vice President, NEC Electron Devices and Executive General Manager, System LSI Operations Unit,NEC Electron Devices, of NEC
Member of the Board Shunichi Suzuki Senior Vice President and Member of the Board of NEC
Corporate Auditor Jiro Takashima President, NEC Kyushu, Ltd.
Corporate Auditor Akio Kurosaka Corporate Auditor, NEC Lease, Ltd.
Corporate Auditor Tomio Nakano General Manager, Structural Reform Promotion Division, NEC Electron Devices, of NEC

In addition to the establishment of NEC Electronics Corporation, the color plasma display panel (PDP) business of NEC will be transferred, effective October 1, 2002, to NEC Plasma Display Corporation, a wholly owned subsidiary of NEC.

Please see the attachment for an outline of the NEC Plasma Display Corporation.

***


CAUTIONARY STATEMENTS:

The statements in this material with respect to NEC's plans, strategies, and beliefs, as well as other statements that are not historical facts are forward-looking statements involving risks and uncertainties. The important factors that could cause actual results to differ materially from such statements include, but are not limited to, general economic conditions in NEC's markets, which are primarily Japan, North America, Asia and Europe; demand for, and competitive pricing pressure on, NEC's products and services in the marketplace; NEC's ability to continue to win acceptance of its products services in these highly competitive markets; and movements of currency and exchange rates, particularly the rate between the yen and the U.S. dollar in which NEC makes significant sales.

In case where the information contained in this material falls within the definition of "Material Information" under Paragraph 2 of Article 166 of the Securities and Exchange Law of Japan, if you (and directors or employees of your company if the content of this material comes to their knowledge in connection with their duty) read this material before the time of "Publication" (which is defined under the Securities and Exchange Law of Japan and its Enforcement Ordinance as twelve hours after its release; i.e., approximately 3:30 a.m. on July 26, 2002 (JST)), you (and directors or employees of your company if the content of this press release comes to their knowledge in connection with their duty) may be prohibited from purchasing, selling, or making other transactions of shares of stock or other securities of NEC before the time of Publication.
This press release is intended as general information regarding NEC's management reform plan and shall not be considered an offering of securities in any country including Japan and the United States.


Press Contacts:

Japan
Daniel Mathieson
NEC Corporation
+81-3-3798-6511
d-mathieson@bu.jp.nec.com

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