Technology

Fujitsu to Spin Off Its Semiconductor Business

The semiconductor production line was a real money black-hole

By Bogdan Botezatu, Hardware Editor

22nd of January 2008, 09:42 GMT

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Fujitsu will invest in researching the 45-nanometer production node

Fujitsu has announced its plans of spinning off its semiconductor unit, as part of the company's initiative to reform its LSI business. The semiconductor industry is a harsh battlefield and, many times, competing

companies have to make alliances with their rivals in order to stay on the market. Some other times, they would have to shut down some of their production lines that haven't seen profit for a while.

The Fujitsu conglomerate also announced that it will transfer its advanced process and product line to a new plant situated in Mie. The move will cost the company around $93.6 million and will begin in March 2008, in order to complete until April-September.

Moving the required equipment from the spinoff to its 300-mm Mie plant will cost Fujitsu about 10 billion Yen or around $93.6 million USD. Fujitsu says that the transfer of equipment is set for March 2008 and is scheduled to be complete in the April to September 2008 time frame. Once set up, the plant will produce semiconductors using 45-nanometer process technology.

''The new subsidiary will enable Fujitsu to accelerate the growth of and intensify its focus on its ASSP business in addition to its ASIC business, while moving forward with business development offering greater speed and flexibility that are characteristic of the LSI industry,'' stated the company representatives.

Back in November, the company reported net sales of $21.853 billion, which accounts for an increase of over 6.4 percent as compared to the first half of fiscal 2006. The company experienced an operating loss during the first quarter, but returned to profitability during the second.

However, overseas sales diminished by almost 16 percent, because of the company's sales policy regarding the flash memory chips used in mobile phones. This made the operating income decrease sharply to about $53 million.

TAGS:

Fujitsu | Semiconductor | joint venture

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