NEC enters into exclusive talks for buying controlling stake in ...

, a Japanese multinational IT company, has its headquarters in Minato, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information research and network solutions to business enterprises, communications services providers and government.

Early developmentCompany formationKunihiko Iwadare and Takeshiro Maeda established Nippon Electric Limited Partnership on August 31, 1898 by using facilities that they had bought from Miyoshi Electrical Manufacturing Company. Iwadare was the representative partner. Maeda handled company sales. Western Electric, who had an interest in the Japanese phone market, was represented by Walter Tenney Carleton. Carleton was as well responsible for the renovation of the Miyoshi facilities. It was agreed that the partnership would be reorganized as a joint-stock company when treaty would allow it. On July 17, 1899 the revised treaty between Japan and the United States went into effect. Nippon Electric Company, Limited was organized the same day with Western Electric Company to become the first Japanese joint venture with foreign capital. Iwadare was named managing director. Ernest Clement and Carleton were named as directors. Maeda and Mototeru Fujii were assigned to be auditors. The overall management was handled by Iwadare, Maeda and Carleton.

The production

Early productionThe company started with the production, sales and maintenance of telephones and switches. NEC modernized the production facilities with the construction of the Mita Plant in 1901 at Mita Shikokumachi. It was completed in December 1902.

The Japanese Ministry of Communications adopted a new research in 1903: the common battery switchboard supplied by NEC. The common battery switchboards powered the subscriber phone, eliminating the need for a permanent magnet generator in each subscriber's phone. The switchboards were at first imported, however were manufactured locally by 1909.

The Japanese telephone serviceBetween 1899

Expansion of the Japanese telephone serviceBetween 1899 and 1907 the number of telephone subscribers in Japan rose from 35,000 to 95,000. NEC entered the China market in 1908 with the implementation of the telegraph treaty between Japan and China. They as well entered the Korean market, setting up an office in Seoul in January 1908. While the period of 1907 to 1912 sales rose from 1.6 million yen to 2 million yen. The expansion of the Japanese phone service had been a key part of NEC's success while this period. This expansion was about to take a pause.

The Ministry of Communications delayed a third expansion plan of the phone service in March, 1913, in spite of having 120,000 potential telephone-subscribers waiting for phone installations. NEC Sales fell sixty percent between 1912 and 1915. While the interim, Iwadare started importing appliances including electric fans, kitchen appliances, washing machines and vacuum cleaners. Electric fans had never been seen in Japan previously. The imports were intended to prop up company sales. In 1916, the government resumed the delayed telephone expansion plan, adding 75,000 subscribers and 326,000 kilometers of new toll lines. Thanks to this third expansion plan, NEC expanded at a time when the rest of Japanese industry was as a general rule in decline.

The Great Kanto EarthquakeThe Great Kanto Earthquake struck Japan in 1923. 140,000 people were killed and 3.4 million were left homeless. Four of NEC's factories were destroyed, killing 105 of NEC's engineers and workers. Thirteen of Tokyo's telephone offices were destroyed by fire. Telephone and telegraph service was interrupted by damage to telephone cables. In response, the Ministry of Communications accelerated major programs to install automatic telephone switching systems and enter radio broadcasting. The first automatic switching systems were the Strowger-type model made by Automatic Telephone Manufacturing Co. in the United Kingdom. NEC participated in the installation of the automatic switching systems, ultimately becoming the general sales agent for ATM. NEC developed its own Strowger-type automatic switching system in 1924, a first in Japan. One of the plants nearly leveled while the Kanto Earthquake, the Mita Plant, was chosen to support expanding production. A new three-story steel-reinforced concrete building was built, starting in 1925. It was modeled afterwards the Western Electric Hawthorne Works.

Stable growthRadio broadcastNEC started its radio communications business in 1924. Japan's first radio broadcaster, Radio Tokyo was founded in 1924 and started broadcasting in 1925. NEC imported the broadcasting equipment from Western Electric. The expansion of radio broadcasting into Osaka and Nagoya marked the emergence of radio as an Industry. NEC established a radio innovation unit 1924. NEC started developing electron tubes in 1925. By 1930, they were manufacturing their first 500 W radio transmitter. They provided the Chinese Xinjing station with a 100 kW radio broadcasting system in 1934.

The A-type switching system

Carrier transmission equipmentIn 1929 Nippon Electric provided Japan's Ministry of Communications with the A-type switching system, the first of these systems to be developed in Japan. Nippon supplied Japan's Ministry of Communications with nonloaded line carrier equipment for long distance telephone channels in 1937.

Microwave researchIn 1939, Nippon Electric established a innovation laboratory in the Tamagawa plant. It became the first Japanese company to successfully test microwave multiplex communications.

Domestic growthNEC began transistor technology and development in 1950. It started exporting radio-broadcast equipment to Korea pursuant to this agreement the first major postwar contract in 1951. NEC received the Deming prize for excellence in quality control in 1952. Computer technology and development began in 1954. NEC produced the first crossbar switching system in Japan. It was installed at Nippon Telegraph and Telephone Public Corporation in 1956. NEC began joint technology and development with NTT of electronic switching systems the same year. NEC established Taiwan Telecommunication Company as their first postwar overseas joint venture in 1958. They completed the NEAC-1101 and NEAC-1102 computers the same year. In 1959 NEC demonstrated their first transistorized computer, the NEAC-2201. They demonstrated it at the UNESCO AUTOMATH show in Paris. The company began integrated circuit research and development in 1960. In 1963 NEC started trading as American Depositary Receipts, ten million shares being sold in the United States. Nippon Electric New York was incorporated in the same year.

The concept of C&C

C&C era beginsDuring this period NEC introduced the concept of "C&C", the integration of computers and communications. NEC America Inc. opened a plant in Dallas, Texas to manufacture PABX and telephone systems in 1978. They as well acquired Electronic Arrays, Inc. of California the same year to start semiconductor chip production in the United States. In 1980, NEC created the first digital signal processor, the NEC ?PD7710. NEC Semiconductors Ltd. was established in 1981, producing VLSIs and LSIs. NEC introduced the 8-bit PC-8800 series personal computer in 1981, followed by the 16-bit PC-9800 series in 1982. In 1983 NEC stock was listed on the Basel, Geneva and Zurich, Switzerland exchanges. NEC changed its English company name to NEC Corporation the same year. NEC Information Systems, Inc. started manufacturing computers and related products in the United States in 1984. NEC as well released the V-series processor the same year. In 1986, NEC delivered its SX-2 super computer to the Houston Advanced Innovation Center, The Woodlands, Tx. In the same year, the NEAX61 digital switching system went in to service. In 1987, NEC Technologies Ltd. was established in the United Kingdom to manufacture VCRs, printers and computer monitors and mobile telephones for Europe. As well that year, NEC licensed innovation from Hudson Soft, a video game manufacturer, to create a video game console called the PC-Engine. Its successor, the PC-FX, was released in Japan in 1994. NEC USA, Inc. was established in 1989 as a holding company for North American operations.

A new centuryNEC celebrated their 100th anniversary in 1999. NEC Electronics Corporation was separated from NEC in 2002 as a new semiconductor company. NEC Laboratories America, Inc. started in November, 2002 as a merger of NEC Innovation Institute and NEC USA's Computer and Communications Technology Laboratory. NEC built the Earth Simulator Computer, the fastest supercomputer in the world from 2002 to 2004, and since produced the NEC N343i in 2006.

On April 23, 2009, Renesas Innovation Corp and NEC Electronics Corp struck a basic agreement to merge by around April 2010.On April 1, 2010 NEC Electronics and Renesas Innovation merged forming Renesas Electronics which is set to be fourth largest semiconductor company according to iSuppli published data.

NEC has structured its organization around three principal segments: IT solutions, network solutions and electronic devices.

The IT solutions business delivers computing solutions to business enterprises, government and individual clients - in the form of software, hardware and related services.

The network solutions business designs

The network solutions business designs and provides broadband network systems, mobile and wireless communications network systems, mobile handsets, broadcast and other systems.

NEC's electronic devices business includes semiconductors, displays and other electronic elements. NEC produces Versa notebooks for the international market and the LaVie series for Japanese markets.

Category:Companies listed on the Osaka Securities Exchange*Category:Companies based in TokyoCategory:Computer hardware companiesCategory:Electronics companies of JapanCategory:Semiconductor companiesCategory:Mobile phone manufacturersCategory:MitsuiCategory:Companies established in 1899Category:1899 establishments in JapanCategory:Electric vehicle battery manufacturersCategory:Companies formerly listed on the London Stock ExchangeCategory:Companies formerly listed on NASDAQ

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