NEC and Renesas are planning to merge companies in order to form a bigger and stronger semiconductor company. Combined they would bring in roughly $13 billion in annual sales of semiconductor machinery. Renesas itself is the product of a merger between Hitachi and Mitsubishi Electric.
In terms of overall market share, the combined company would still be the #2 behind a merged business between Intel and Samsung. The two companies are aiming to conclude talks by July and become one company by next April.