NEC Corp announced today that it will withdraw from a Japanese government-backed supercomputer project. The drawback comes alongside cost cutting measures during the economic slowdown. The project was started in 2007 in an effort to bring NEC, Hitachi and Fujitsu together with the Riken Institute to develop the next generation of supercomputers. NEC decided to pull out in light of a 296.6 billion yen [3.05 billion dollar] loss year to date [as of March].
The company is working to strengthen its profitability by all means including cutting jobs and reviewing projects amid the exacerbating economic environment due to the global downturn,” NEC said in a statement.
“As the next-generation supercomputer project shifts to the phase of manufacturing, a large amount of investment linked to producing the hardware is expected,” it said. “The spending would significantly weigh on the company’s financial health.”
For more info, read the full article here.