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(Nikkei BP Group)

(No.1 High-Tech News Site in Japanese)

  • Micron Electronics to Scale Down Japanese Unit
  • January 6, 1999 (TOKYO) — Micron Electronics Japan K.K., a Japanese subsidiary of Micron Electronics Inc. of the United States, announced that it will shift all decision-making power to the U.S. parent company effective as of the end of February.
    Decisions covered will include those concerning supply, sales and the after-sales service system, the company said.

    It is not known whether Micron Japan will remain a corporate body, or become a liaison office to help Japanese agencies. However, the company is certain that the number of staff will be cut. The company will make an announcement in mid-January about its status.

    Its sales system will be changed substantially. Micron Japan has been doing business both by direct sales as well as sales through agents. However, at the end of January, it will treat all sales as part of its agent-based sales system. By the spring, all direct sales will be discontinued.

    According to Micron Japan, the move to discontinue direct sales was caused by thin profits from direct sales compared to indirect sales. The company has about eight sales agents in Japan, ranging from system integrators including Nissho Electronics Corp. to mass retailers of electric appliances.

    The company plans no immediate changes in its product line and support system, and it will introduce new products when they are available. Its support services will continue to be assigned to PFU Ltd. and UNIADEX Ltd.

    Micron Japan’s U.S. headquarters earmarked a budget of about US$3.2 million for the second quarter of 1999 (February-April 1999) to close its Japanese unit. This budget was made public on Dec. 21, 1998, when Micron released its statement of accounts for the first quarter of fiscal 1999.

    (BizTech News Dept.)

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