Fujitsu to realign and strengthen LSI business into subsidiary

Our Corporate Bureau
21 January 2008

Leading provider of customer-focused IT and communications solutions Fujitsu Limited today announced its decision to pursue the reorganisation of its LSI business divisions into a new subsidiary scheduled to be established by March 2008, following the approval of a proposal to this effect by board of directors at its meeting held today in Tokyo.

The new subsidiary will enable Fujitsu to accelerate the growth of and intensify its focus on its ASSP business in addition to its ASIC business, while moving forward with business development offering greater speed and flexibility that are characteristic of the LSI industry.

Fujitsu also announced that development and mass-production prototyping of its advanced process technologies for the 90nm-generation and beyond will be consolidated to its Mie plant located in Mie prefecture of central Japan, a decision that was also approved at the Board of Directors meeting today. Leveraging this consolidation, Fujitsu will strive to accelerate development of process technologies for 45nm-generation and beyond.

1. Background to the reorganisation of the LSI business Purpose

At the core of Fujitsu's LSI business is logic LSI, used for operation and control functions. While currently offering a wide range of logic LSI products up to 65nm-generation, Fujitsu implements a business model referred to as a new IDM model, in which Fujitsu collaborates as a strategic business partner with internal (Fujitsu Group) and external partners and offers customers full turnkey services, from design and development to manufacturing and sales.

Fujitsu's logic LSI lineup offerings to customers worldwide include custom ASIC and COT products, general-purpose ASSPs and microcontrollers, and analog LSIs for system power management.

Interdepartmental collaborations by Fujitsu's LSI business divisions with other internal divisions include reinforcing competitive edge of servers and mobile phones from Fujitsu by providing high value-added LSIs. By leveraging internal synergies to realize advance development and advance evaluation of intellectual property development, for wireless technologies such as WiMAX and image processing technologies such as H.264, Fujitsu's LSI business divisions also achieved early market entry for LSIs targeting these markets.