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Japanese chip maker NEC Electronics Corp is planning to outsource some functions so to help meet an expected shortage of liquid crystal display chips and trim costs. It is believed that the LCD sector will supposedly face a shortage of LCD drivers in 2008 because semiconductors price has fallen drastically.   

The cutback is on the card and key clients like LG.Philips LCD Co Ltd, AU Optronics Corp and Sharp Corp all are expanding their operation of larger TV panels at next generation lines.

Japan's third-largest chipmaker will cut its mobile-phone research budget by about 50 percent next fiscal year, Chief Executive Officer Toshio Nakajima said in a Dec. 14 interview with Bloomberg Television in Tokyo. The company plans to announce a business plan in February that will disclose further cost reduction measures, he said. Source

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