NEC, Matsushita join forces in 3G handset business

TOKYO—On Aug. 21, NEC Corp., Matsushita Electric Industrial and Matsushita Communication Industrial, announced plans to combine forces in the third-generation (3G) mobile handset business. Based on the agreement, NEC and Matsushita will jointly develop a common architecture and application/software for 3G handsets, mutually supply devices on an original equipment manufacturer (OEM) basis and develop 2.5/3G terminals.
As these handsets are becoming more advanced and complicated, there is increased pressure on the mobile handset manufacturer for further development. Partially due to the complexity, vendors have been forced to recall several models of handsets during the past several months to fix glitches.
The firms will develop a common platform for 3G terminals and jointly develop software. They will also develop a common checklist and jointly conduct field tests and function tests. Matsushita will provide motion picture processing technology, while NEC will provide chip and software development technology for the joint effort. Based on the common architecture and software, each firm will develop a commercial product and produce them at their own factories. Both firms are planning to produce common chip sets for handsets in the future.