Panasonic, Fujitsu may integrate system chip operations
(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Feb. 1 -- (Kyodo) _ Panasonic Corp. and Fujitsu Ltd. are considering setting up a new company possibly in the next business year starting April to merge their operations of system LSI chips used in such products as cars and digital appliances, sources close to the matter said Friday.
The move is aimed at rebuilding the loss-making businesses by integrating their design and development functions. The government backed Development Bank of Japan plans to invest some tens of billions of yen in the new venture, the sources said.
Struggling chipmaker Renesas Electronics Corp. also took part in negotiations initially, but the company failed to reach terms with the two other Japanese companies, they said.
The name and location of the new venture will be decided in the future, the sources said. The DBJ plans to make the investment through a new fund to be established to sponsor companies with growth potential, the sources said.
Apart from forming the joint venture, Fujitsu is in talks with companies, including Taiwan Semiconductor Manufacturing Co., to sell its mainstay semiconductor production base in Mie Prefecture. The company plans to compile by the end of March its plan to rebuild the semiconductor business.
(c) 2013 Kyodo News International, Inc.
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