NEC Electronics will create a new subsidiary, the NEC Electronics Korea, in order to increase its business coverage in the country. The new office based in Seoul will initiate operations starting November 1 with about 40 employees. Furthermore, the local strategy will be focused on enhanced sales and technical support for all Korean customers.

This is the first time the company tries to develop a local office in Korea, a region which has been covered by other quarters found in Hong Kong. "As a result of the establishment of NEC Electronics Korea, and NEC Electronics' decision to integrate its compound semiconductor devices businesses (announced on April 1, 2006), NEC Compound Semiconductor Devices Hong Kong will be merged with NEC Electronics Hong Kong on November 1, 2006," said the company.

The long term strategy will also include the enhancement of the company's services and products portfolio, and also an increase of the number of employees at NEC Electronics Korea, which is expected to double in about two years. In addition, the manufacturer stated that it will expand semiconductor sales to customers in the region from approximately 45 billion yen (for the fiscal year ended March 31, 2006) to about 80 billion yen by 2008.

The main reason for which the company decided to base a new office in Korea is the latest sales report which shows that the demand for semiconductor sales and support in Korea has been stimulated by the rapid growth due to the popularity of flat-panel televisions and digital AV applications. There has also been a considerable rise in demand for microcontrollers, power management devices, and compound semiconductor devices.