Sept. 23, 2002 – Tokyo, Japan – Toshiba Corp. and Fujitsu Ltd. have decided to postpone their plan to merge semiconductor operations to form a comprehensive semiconductor alliance.

The two companies failed to bridge gaps, with Toshiba wanting to beef up competitiveness through the merger, but Fujitsu showing reluctance due to its wish to maintain semiconductor operation as its core business, reported the Kyodo News.

Given the postponement, their agreed alliance will likely be limited to the joint design and development of system large-scale integrated circuit microchips.

“Our business models such as mainline products and strategies differ, and there are no (merger) cases of success by other firms so far,” a Fujitsu executive said.