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Japan trio may unite to become one giant chipmaker

by Steven Williamson on 9 February 2012, 15:19

Tags: Fujitsu (TYO:6702)

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In a Japanese government-backed move, Renesas Electronics, Fujitsu Ltd and Panasonic Corp may merge their chip operating businesses to create one unified company capable of taking on its competitors and turning a profit, according to people familiar with the matter.

With stiff competition from chipmakers Intel and Samsung, the three Japanese semi-conductor manufacturers are discussing ways in which they can turn around their system LSI chip businesses (system-on-a-chip) with all three companies reported to have suffered heavy operating losses for the fiscal year ending in March.

Innovation Network Corporation, a government-backed investment fund, is considering supporting the three-way merger after getting involved in similar restructuring plans with other Japanese companies struggling to be profitable.

While Fujitsu is expected to report a loss of ¥15 billion this fiscal year in its device-solution business segment, which includes system chips, Panasonic expects to record a loss of ¥22 billion and Renesas ¥48 billion.

The three companies have yet to agree of plans, though the Nikkei believes that an agreement could be signed by March with a new business starting up by the end of the year.

Source: FT.com

HEXUS Forums :: 2 Comments

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Would be nice if they could offer an alternative to TSMC!
Renesas is owned by NEC, Hitachi and Mitsubishi so apart from Toshiba and Sony all Japanese semiconductor companies are merging?

I suppose with all the Korean, Taiwan and soon to be Chinese competion Considering