Chinese computer maker Lenovo is talking with Japan's NEC about expanding their new joint venture to include servers, according to Bloomberg News.
Masato Yamamoto, who heads NEC's platform business, said in a briefing that such an agreement would give NEC greater access to the Chinese market while at the same time it would help Lenovo expand its lineup of servers.
"The PC market is coming to to the end of its growth, and Lenovo is probably looking around to see what else it can build on," Tokyo-based analyst Takao Hattori told Bloomberg. "NEC has probably wanted to partner with somebody because they'd have a tough time expanding in China by themselves."
Last week Lenovo, which has a headquarters in Morrisville that employs about 1,625 employees, announced a joint venture with NEC to sell PCs in Japan. NEC is spinning off its PC business to the venture, which will be controlled by Lenovo with a 51 percent ownership stake.
When the joint venture was announced the companies said that they would explore cooperating in other areas. Lenovo is the No. 4 PC maker with a 10.4 percent market share.
"Lenovo's server business, on a unit basis, is much smaller than NEC's, but they're strong in the Chinese market," Yamamoto said. "We've got a much wider product lineup than Lenovo, so there's a complementary relationship."