Two of Japan’s leading mobile phone companies, Matsushita and NEC are in talks to cooperate with Texas Instruments (TI) on developing standardised parts for mobile phones, in an attempt to reduce costs in the fiercely competitive domestic handset market. The two groups’ semiconductor subsidiaries ?? NEC Electronics and Panasonic Mobile Communications ?? are also expected to participate in an alliance. More than 10 manufacturers currently compete for consumer attention in Japan with the recent entry of global leaders like Nokia, LG and Motorola. The high cost of developing 3G mobile phones has been a particular burden for Japanese manufacturers at a time when the domestic market has become saturated. To help producers cope with the costs and thereby spur growth in the 3G market, DoCoMo has provided manufacturers with nearly Y80 billion ($676 million) in funds since 2002.
