Restructuring of Fujitsu's semiconductor business

Restructuring and New Direction of Semiconductor Business Since fiscal 2009, Fujitsu and Fujitsu Semiconductor have advanced their semiconductor business in accordance with a proprietary "fab-lite" business model. Since fiscal 2011, however, this business has been confronted with an extraordinarily difficult operating environment as sales declined due to fast-deteriorating market conditions and an increasingly severe competitive climate. In response, the companies accelerated the fab-lite strategy, starting with the transfer of ownership of Fujitsu Semiconductor's Iwate Plant and LSI assembly and test facilities. Seeking to further develop their semiconductor business, and to build a more robust foundation for business based on their portfolio of technologies, Fujitsu and Fujitsu Semiconductor have considered a variety of options, including talks with outside companies. Fujitsu and Fujitsu Semiconductor have now decided to establish a new fabless company with the integration of Fujitsu Semiconductor's system LSI business with that of Panasonic Corporation. Another initiative is the deliberation on the transfer of the Mie Plant to a new foundry company, including Taiwan Semiconductor Manufacturing Company Limited (TSMC). The decision has been made to move forward on planning to establish a new foundry company, to which Fujitsu Semiconductor's Mie Plant is to be transferred. As a result of these decisions, the scale of Fujitsu's system LSI business will expand and be operated as an independent company. © Fujitsu