The merger will create Japan's biggest semiconductor maker and the world's

The merger will create Japan's biggest semiconductor maker and the world's third largest after Intel Corp (INTC.O) and Samsung Electronics Co Ltd (005930.KS), on the basis of sales at the end of March. TOO EARLY TO CALL A RECOVERY A lift in demand for flat TVs, DVD recorders and other consumer electronics, especially in China, are nudging up orders and factory usage at NEC Electronics. Factory use at NEC Electronics, which makes chips for Nintendo Co Ltd's (7974.OS) Wii game console and Toyota Motor Corp's (7203.T) Lexus luxury car, is expected to hit over 60 percent in July-September, up from over 50 percent in April-June and 43 percent in January-March. But Yamaguchi said it was too early to call a true recovery, as higher unemployment rates in the United States dents spending power.

"The worst is over, but we have to see what the orders are in September and October to read how much things will get better," he said. "I don't think global chip demand will recover their peak in 2007 until 2011 or 2012." To shave costs, NEC Electronics needs to keep capital spending at a minimum and consider outsourcing more chips, with the exception of chips used to control car functions, he said. "We need to keep automobile chips in-house, because it is important that we are in control of their quality and supply," he said. "Demand for chips for hybrids and electric cars is going to jump." NEC Electronics, 65 percent owned by NEC Corp (6701.T) has forecast a loss of 82.6 billion yen ($855 million) for the year to March 2010. Unlisted Renesas, owned 55 percent by Hitachi Ltd and 45 percent by Mitsubishi Electric Corp (6503.T), is expected to log a net loss of a little less than 90 billion yen. NEC Electronics shares closed down 3.7 percent, against a 0.5 percent fall in Tokyo's electrical machinery index .IELEC.T. (Additional reporting by Reiji Murai; Editing by Dan Lalor) ($1 = 96.62 yen) ((; +81-3-6441-1812; Reuters Messaging: )) ((If you have a query or comment on this story, send an email to )) (C) Reuters 2009.All rights reserved.Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters.

Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nL2707774 China Japan. TiVo Statement on Decision by U.S. Court of Appeals to Stay PermanentInjunction Issued by District Court in Lawsuit Against EchoStarALVISO, Calif., July 2 /PRNewswire-FirstCall/ -- TiVo Inc. (Nasdaq: TIVO), thecreator of and leader in television services for digital video recorders(DVRs), today announced that U.S. Court of Appeals for the Federal Circuitgranted the request of EchoStar and its related companies ("EchoStar") to staythe contempt order imposed by the U.S. District Court pending the outcome ofEchoStar's appeal."We are confident that the District Court judge's thorough and well-reasoneddecision finding EchoStar in contempt of court for violating the injunctionand awarding further damages will be upheld once the Federal Circuit has theopportunity to review the merits of the case.The Court of Appeals stayed theDistrict Court's order the previous time this case was heard on appeal andultimately affirmed the judgment against EchoStar.We are pleased that thecourt recognizes the urgency of ruling on this appeal and has ordered anexpedited briefing schedule."About TiVo Inc.Founded in 1997, TiVo Inc. , 'TiVo, TV your way.', Season Pass, WishList, TiVoToGo, Stop||Watch,Power||Watch, and the TiVo Logo are trademarks or registered trademarks ofTiVo Inc or its subsidiaries worldwide (C) 2009 TiVo Inc All rightsreserved.