SAN FRANCISO After recently divesting its semiconductor business, Japan's Oki Electric Industry Co. Ltd. is spinning off its telecommunications business and establishing it as Oki Networks effective Oct. 1, Oki said Thursday (Aug. 28).
Oki Electric (Tokyo) said the spinout would enhance product development and help the new company compete in a rapidly changing market. In recent years, as networks migrate to IP and the use of NGN-based networks accelerates, the business environment has been changing rapidly and globally with fiercer competition, Oki said.
"In order to become a winner in this competitive network market and further expand our telecom business, we understand that it is essential to further increase flexibility in management and establish a business structure that can respond to the changing market in a more agile and timely manner," said Masayoshi Matsushita, senior vice president at Oki.
Last month,Oki Electric signed a definitive agreement to transfer 95 percent of the shares of its semiconductor unit, Oki Semiconductor Co. Ltd., to Rohm Co. Ltd.