Fujitsu elaborates on LSI spinoff plans

Feb. 12, 2008 – Fujitsu Ltd. is revealing more details of its planned spin off its LSI business divisions into a new subsidiary, saying it will expand the business’ offerings to ASSP, microcontrollers, and analog products.

Fujitsu Microelectronics Ltd., capitalized at ¥60B (US $560.7M) and headquartered in Tokyo, will focus on design, development, manufacturing, and sales of LSI products, augmenting ASIC and COT with “an expanded lineup of general-purpose products including ASSP, microcontroller, and analog products,” the company explained in a statement.

The plan, as disclosed in late January, essentially means moving work out of the company’s Akiruno Technology Center (ATC) in western Tokyo, formed in July 2000 to centralize the Fujitsu Group’s LSI development and design activities, to the company’s 300mm line in Mie where it works on 90nm-65nm process technologies, as well as >e;0.13-μm processes (150-200mm). Equipment transfer is slated for March 2008, with 45nm development expected to be completed sometime in fiscal 1H08 (ending March 2009).

Also with the company split means dividing up various subsidiaries and affiliates — many, including Fujitsu Electronics Inc., will become subsidiaries of the new LSI operation, while a few (Fujitsu Component Ltd, Shinko Electric Industries Co. Ltd., and Fujitsu Media Devices Inc.) will remain with Fujitsu Ltd.

Fujitsu’s device solutions segment made up about 15.8% of total sales in fiscal 1H07 (April-September), amounting to ¥397.9B (US$3.46B), up about 5% from 1H06. Specific sales attributed to LSI devices were up 9.2% to ¥257.9B ($2.41B), with operating income in F1H07 of ¥6.1B ($53M) for a 1.5% margin, though margins improved to 4.7% of sales in fiscal 2Q07 (¥8.77B/$82.1M). Fujitsu is targeting 5% operating margins for the new LSI business for FY09 (ending March 2010).


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