NEC Realigns Operations in China to Better Serve Customers

7/5/2005 - NEC Electronics Corporation (TSE: 6723), a leading provider of semiconductor solutions, announced that the company is realigning its operations in China in an effort to better serve the needs of customers in the region and secure the company's long-term growth. This business realignment was driven by the company's acquisition of a license from the Chinese government to import and sell semiconductor products designed and/or manufactured outside of China, pursuant to Decree 8 of the Ministry of Commerce Administrative Measures on the Investment in the Commercial Field by Foreign Investors. A summary of the realignment is offered below.

  1. NEC Electronics' semiconductor development and sales teams in China were concentrated at Beijing NEC IC Design Company. The development and sales teams at Shougang NEC Electronics (SGNEC), comprised of 40 and 20 people respectively, were integrated with Beijing NEC IC Design Company to promote more effective operations, and SGNEC will focus exclusively on manufacturing efforts.
  2. Beijing NEC IC Design Company will become the flagship site for NEC Electronics in China, and the company will re-launch operations under the new name "NEC Electronics China". The company will continue to be headed by Fumiaki Urase, current president of Beijing NEC IC Design Company.
  3. Based on the newly acquired license to import and sell semiconductor products in China, NEC Electronics China will actively pursue sales of NEC Electronics products to customers in the region by working closely with nearby NEC

NEC Electronics has a long and rich legacy of serving customers in China, starting with the establishment of SGNEC in 1991. Beijing NEC IC Design Company was established in 1998, followed by NEC Electronics Shanghai in 2001. However, despite having a physical presence in China, opportunities for business in the region remained limited because of restrictions for foreign companies on the import of semiconductor products developed and manufactured outside of China.

On June 1, 2004, the Chinese government enacted Decree 8 of the Ministry of Commerce Administrative Measures on the Investment in the Commercial Field by Foreign Investors, which allowed commercial wholly-owned enterprises (WOFE) to apply for licenses starting December 11, 2004. Beijing NEC IC Design Company submitted the application in January 2005, which was approved June 30, 2005.

"Although NEC Electronics has had a presence in the Chinese market for many years now, recently we have experienced an upswing in demand for our products in line with economic growth in the region," stated Junshi Yamaguchi, executive vice president, NEC Electronics. "The acquisition of the import license and the concentration of our design and sales teams in Beijing mark major milestones that will serve as the foundation for our improved ability to service customers in China."

Added Fumiaki Urase, president of Beijing NEC IC Design Company, "These measures are evidence of our commitment to the China market. We look forward to building more prosperous relationships with our customers."

About NEC Electronics
NEC Electronics Corporation (TSE: 6723) specializes in semiconductor products encompassing advanced technology solutions for the high-end computing and broadband networking markets, system solutions for the mobile handsets, PC peripherals, automotive and digital consumer markets, and multi-market solutions for a wide range of customer applications. NEC Electronics Corporation has 26 subsidiaries worldwide including NEC Electronics America, Inc. ( and NEC Electronics (Europe) GmbH ( Additional information about NEC Electronics worldwide can be found at

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