NEC, Matsushita, and Panasonic Mobile Communications say they have signed a memorandum of understanding, and will establish a joint venture devoted to mobile phones. The as-yet-unnamed venture will launch in October, and offer contract mobile phone handset development, including software, and silicon known as… “large-scale integrations” (LSIs), the companies say.

NEC says it has collaborated with Panasonic on mobile phone technology since 2001. For example, along with DoCoMo, the partners in 2004 created a common Linux middleware platform subsequently used in three generations of NEC and Panasonic phones for DoCoMo's 3G “FOMA” (freedom of mobile access) network.

NEC/Panasonic mobile phone design joint venture structure
(Click to enlarge — source: Panasonic)

The new venture will offer 3.5G and 3.9G mobile handset development services on a contract basis, according to the companies. The venture's handsets will be based on a common platform, including middleware, applications, and hardware, for “greater efficiency and less duplication of effort.”

As reported earlier, the venture will be capitalized at 100 million yen (about $850,000), with equal ownership between NEC and Panasonic. NEC will supply the venture's president, while Panasonic will lend the effort a vice-president. Two board members will also be appointed, from unnamed companies.

NEC and Panasonic say the venture will create synergies between NEC's communications and computing expertise, and Panasonic's consumer electronics and audio-visual product experience. The venture will be based in Yokohama City, and employ 140. It is expected to launch in early October.

Phones bearing the brand names “NEC” and “Panasonic” will continue to be planned, manufactured, and sold by NEC and Panasonic, the companies say.

NEC says it employs more than 150,000 people worldwide and had net sales of approximately $41 billion in the fiscal year that ended March 31, 2006.

Panasonic Mobile Communications Ltd. is a member of the Matsushita Group, which was founded in 1918 by Japanese Industrialist Konosuke Matsushita. Known by its Panasonic brand name, Matsushita's consolidated net sales reportedly were $76 billion for the fiscal year ended March 31, 2006.

 
This article was originally published on LinuxDevices.com and has been donated to the open source community by QuinStreet Inc. Please visit LinuxToday.com for up-to-date news and articles about Linux and open source.