Fujitsu spins off chip division

 

Gallery

By Stuart Turton

Posted on 21 Jan 2008 at 09:59

Fujitsu is spinning off its loss-making chip division, as it seeks to pave the way for alliances with other chip makers.

Reports suggest that despite the chip division accounting for around 10% of Fujitsu's profits in recent years, spiralling development costs have caused heavy losses requiring the company to rethink its strategy.

In a statement from Fujitsu, the company says it's resigned to holding onto the division as a wholly owned subsidiary while it seeks out a new buyer.

The new subsidiary will be formed in March, with consolidation of the new company expected to be completed in September with a price tag of around $93 million.

The move follows a wave of consolidation in Japan as major players, including IBM and Samsung, look to reduce the escalating development costs of new technologies including 32nm fabrication.