Fujitsu President Masami Yamamoto at the press conference
Fujitsu President Masami Yamamoto at the press conference
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Fujitsu Ltd will sell its business of designing and developing microcontrollers and analog semiconductors, which is run by Fujitsu Semiconductor Ltd, etc to Spansion Inc.

Fujitsu concluded a final agreement April 30, 2013, to sell two business sectors for about US$110 million and inventory for about US$65 million to Spansion. The sellout is scheduled to be completed in July to September 2013.

The design/development business is run by Fujitsu Semiconductor, Fujitsu VLSI Ltd (subsidiary of Fujitsu Semiconductor) and Fujitsu Microelectronics Solutions Ltd. Its annual sales of microcontrollers and analog semiconductors was about ¥55 billion (in fiscal 2012), which accounts for about 1.3% of Fujitsu's consolidated sales.

The design/development business will be merged into Fujitsu and, then, transferred to a new subsidiary to be formed by Fujitsu Semiconductor. All the shares of the new company will be transferred to the Japanese arm of Spansion.

Fujitsu Semiconductor will continue production

Fujitsu Semiconductor will continue to manufacture microcontrollers and analog semiconductors for Spansion. And Fujitsu Electronics Inc will support the sales of them in Japan as a sales representative for Spansion.

In February 2013, Fujitsu announced that it will integrate its SoC business with Panasonic Corp's SoC business and transfer the SoC manufacturing business to a foundry that Fujitsu, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), etc will establish.

The number of Fujitsu Semiconductor's employees is about 8,600. About 3,500 of them will be transferred to the new company to be formed by Fujitsu and Panasonic or the foundry to be formed by Fujitsu, TSMC, etc. And about 1,000 workers will be transferred to Spansion.

About 2,000 employees in Japan and about 400 in other countries will leave the company. About 1,700 will stay in Fujitsu Semiconductor and be engaged mainly in the production and sales of microcontrollers and analog semiconductors.

Fujitsu to keep distance from semiconductors

At the press conference on Fujitsu's financial statements for fiscal 2012 that took place April 30, 2013, in the company's headquarters, President Masami Yamamoto explained the reorganization of its semiconductor business. He said that the reorganization have reached the halfway point.

Commenting on the transfer of its Mie Plant and the establishment of the new SoC company, which Fujitsu is working on with TSMC and Panasonic, respectively, Yamamoto said that they will be settled in the first half (of fiscal 2013).

About the Fujitsu Group's engagement in the semiconductor industry, Yamamoto said, "Semiconductor has been considered crucial for Japan's industry, and it still is. Semiconductor is important not only for the ICT industry but also for many other industries. So, it is meaningful that the Mie Plant will remain in Japan as a manufacturing base for semiconductors."

"However, the Fujitsu Group will keep a little distance from the semiconductor business itself," he said. "We will be deeply involved in the development of processors for servers and SoCs for mobile phones."