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Fujitsu restructures LSI chip business, cut jobs

Posted: 08 Feb 2013     Print Version  Bookmark and Share

Keywords:restructuring  merge  LSI chip  microcontroller  wafer fab 

Japan's struggling chip maker Fujitsu has announced restructuring of its semiconductor business which is expected to affect about 2,000 jobs.

Under this turnaround strategy, Fujitsu and Panasonic Corp. will merge their LSI chip businesses to establish a new fables company.

However, that leaves numerous parts of Fujitsu's semiconductor business for which strategic solutions need to be found.

The fate of the Fujitsu's microcontroller and analogue device business is uncertain as the company announced it is looking at an "entire range of possibilities" for the business. Such language is usually taken to mean a range from continued investment through to a sale or even closure. Fujitsu said it aims to offer a stable supply to customers and develop the business.

Fujitsu also said it is looking to sell its 300-mm wafer fab at Mie to a foundry. Fujitsu specifically mentions Taiwan Semiconductor Manufacturing Co. Ltd. (Hsinchu, Taiwan) as a potential purchaser despite the fact that the Taiwanese foundry rejected a similar wafer fab related offer from fellow Japanese strugglers Renesas Electronics Corp. in 2012.

Fujitsu recently announced the transfer of assembly and test lines to J-Devices Corp.

After the integration of the system LSI business with that of Panasonic and the disposal of the 300-mm wafer fab at Mie, Fujitsu Semiconductor will be left with a 200-mm wafer fab and a 150-mm wafer fab in Aizu-Wakamatus and the 200-mm line of Fujitsu Semiconductor Technology (FSET). Fujitsu said employees would be "rationalised" to improve capacity utilisation at these facilities.

Fujitsu added that as a result of the decision to restructure these operations, approximately 2,000 people in the semiconductor group would "come under the scope of rationalisation."

The announcement came as Fujitsu reported a net loss of Rs.5,163.40 crore (79.0 billion yen) on fiscal third-quarter consolidated net sales of Rs.68,509.80 crore (1,048.2 billion yen).

- Peter Clarke
  EE Times

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