I am not sure if Samurai exist any more except for the Western films...but you have a point here. Definitely the Japanese chip companies are struggling.
How such a proposed consolidation will be translated in the market size, please read Dylan's story here:
Junko is right with "a lack of leadership, or an endemic case of indecisiveness". For instance,"Renesas Mobile, which is looking to become 'the Qualcomm alternative’ in the mobile world" will likely become a dream. As of today, no major mobile phone OEM/ODM ever announced the use of any RMC's SOC. In fact, I am wondering why none of the most recent (of last 10 years at least) leaders of the Japan-based SOC companies ever show any spirit of the Samurai by publicly admitting their shame, given that their companies keep downsized in the past 15 years.