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NEC and Sony to Merge Optical BusinessesThe consolidation in the optical drive business continues with the announcement
that NEC and Sony are going to merge their optical drive ventures to form
Sony NEC Optiarc.
The deal apparently leaves Sony with a majority stake in the new venture,
and Sony gets to designate the President of the company,
while NEC chooses the Vice President.
The announcement claims that operations are planned to begin on April 1, 2006.
The claimed benefit of the merger is to combine Sony's expertise in optical pickups
with NEC's expertise in LSI (Large Scale Integration: packing lots of integrated circuits into a small space).
It will be interesting to see what effect the merger has on the ongoing standards war
for the next generation of DVD disc formats.
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