LENOVO Group Ltd and Japan's NEC are in talks to set up a smartphone joint venture as China's biggest personal-computer maker seeks opportunities in the mobile sector, media reported yesterday.

Lenovo and NEC have had detailed discussions on the venture although nothing had been finalized, Reuters reported yesterday, citing a source close to the issue. Lenovo yesterday said it was in talks over a possible joint venture, but the world's No. 2 PC maker declined to reveal more details.

Lenovo eyes cooperation with NEC as an entry into the Japanese smartphone market.

Over the long term, Lenovo is seeking other opportunities in smartphones, servers and televisions as sales and the growth rate in the PC sector decline, industry insiders said. In the January-March quarter, global PC sales shed 14 percent year on year, according to International Data Corp, a US-based IT research firm.

Lenovo's executives met investors in Singapore yesterday to fuel interest in a bond issue that may raise US$500 million or more and help fund a renewed acquisition drive, possibly including IBM Corp's server business, Reuters said.