Fujitsu, Sumitomo to Form Joint Venture in Compound Semiconductor Devices
Dec 29, 2003
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Tokyo, Japan-based companies Fujitsu Limited and Sumitomo Electric Industries, Ltd. have agreed to create a joint venture that will consolidate the operations of Fujitsu Quantum Devices Limited, a wholly owned subsidiary of Fujitsu that is focused on the development, manufacture, and sales of compound semiconductors, with the electronic devices business of Sumitomo Electric's compound semiconductor operations.
Fujitsu and Sumitomo Electric will each have an equal equity ownership in the joint venture.
The new company will be engaged in everything from development and manufacturing to sales of a wide variety of compound semiconductor devices.
The compound semiconductor devices business has been expanding its product applications from telecommunication infrastructure market, such as equipment for fixed-line networks and wireless base stations, to such growth markets as mobile terminals, digital home appliances, as well as enterprise applications, such as wireless local area networks (LAN), according to Fujitsu.
Through the integration of the two companies' operations, the new joint venture will pursue the following strategies for growth:
The joint venture is aimed at building a strong research and development (R&D) platform, particularly in the areas of process technologies and device performance.
Through the integration of the two companies' R&D and manufacturing resources, the joint venture will work toward a dominant position in the market for telecommunications infrastructure devices as well as new markets with high-growth prospects, such as wireless and broadband communications, digital home appliances, and information terminals, and IP networking.
The new venture is targeted at establishing a global market presence, including the key markets of the U.S., Europe, and Japan, where fiber-to-the-home and other initiatives to develop high-speed subscriber networks are being implemented, as well as China.
Fujitsu Limited, Fujitsu Quantum Devices, and Sumitomo Electric will continue to negotiate various details in order to sign a formal agreement. According to the companies, the joint venture should be operational as of April 1, 2004.
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