Japan-based NEC bought out the shares of Beijing Huahong NEC IC Design Co held by Chinese partner Beijing Huahong Integrated Circuit Design Co, according to Japanese media. The acquisition makes the IC joint venture a wholly owned subsidiary.
Beijing Huahong NEC was set up in 1998 as a 60:40 joint venture capitalized at US$20 million. The Nikkei Business Daily reported that NEC subsidiary NEC Electronics Corp will make Beijing Huahong NEC a wholly owned subsidiary by buying NEC's shares in the company.