Fujitsu Ltd., Panasonic Corp., and Development Bank of Japan Inc. (DBJ) have signed a memorandum of understanding in which DBJ will make an investment and provide a line of credit for a new fabless semiconductor company specializing in system LSI design and development which Fujitsu and Panasonic will jointly establish.
Aiming for the global development of Japan’s system LSI industry, Fujitsu and Panasonic have been in discussions about establishing a new company with a new business model. Fujitsu and Panasonic have been considering the integration of the system LSI business and associated intellectual property of Fujitsu’s wholly owned subsidiary, Fujitsu Semiconductor Ltd., together with Panasonic’s system LSI business and related intellectual property, with both Fujitsu and Panasonic receiving shares in the new company equivalent to the value of their respective contributions.
Fujitsu Semiconductor and Panasonic have been offering system LSI products and related solutions by capitalizing on their management resources in the system LSI business that include cutting-edge technology in video and imaging as well as networking fields, world-class human resources, intellectual property, and customer bases. The new company will consolidate these management resources of the two companies in order to make business profitable and will aim for an initial public offering (IPO) within several years of its establishment.
Plans for the new company include switching to a fabless business model, creating an optimal management structure for the business, integrating open innovation that utilizes outsourcing, and exerting the synergy of both Fujitsu and Panasonic and the resources they possess. In addition, the new company will place priority in technological areas with high growth potential such as cloud computing, big-data, and optical networks as well as in the fields of medical equipment and energy. In doing so, the new company will be providing added value to its customers as it attempts to expand into markets outside of Japan.