The merger of NEC Electronics and Renesas Technology will not now be completed until the end of September.
The two companies and their parents NEC, Hitachi and Mitsubishi are negotiating the final details of the multi-billion dollar merger which would create the third largest semiconductor manufacturer behind Intel and Samsung.
"To achieve the business integration in April 2010, the companies will continue to engage in proactive negotiations aiming to reach a definitive agreement by the end of September," said the companies.
The orignal agreement to merge the the semiconductor operations of NEC and Renesas was first agreed back in April, since then the comapneis have been working out teh final details of the merger which was orignally expected to be completed in July.
A report on Reuters suggests that part of the negotiations hinges on the scale of the investment needed by the parent companies to make the merger possible.
The companies said in a statement that due diligence has been completed, and that they were now working on the final stages of the agreement.
The combination of Renesas Technology and NEC Electronics will create the world’s No.3 semiconductor company with combined revenues of $14bn.
The deal was pushed by the Japanese government which has been urging further consolidation of the Japanese semiconductor industry for years.
See: NEC-Renesas will be greater than sum of its parts