News Article
Fujitsu Shifts LSI Facilities To J-Devices
Fujitsu Semiconductor Limited will transfer ownership of its Large Scale Integration (LSI) assembly and test facilities belonging to its fully owned subsidiary, Fujitsu Integrated Microtechnology Limited (FIM), to J-Devices Corporation.
The objective of the agreement is for the two companies to build a long-term, mutually beneficial strategic partnership in the semiconductor manufacturing business.
It is expected that a conclusive agreement will be signed and the transaction completed by the end of this year. Fujitsu Semiconductor has been striving to enhance its business foundation and improve corporate management by pursuing a unique "fab-lite" business model, as announced in 2009. As part of these efforts, the company has been optimising its manufacturing resources in accordance with changes in the economic and business environment.
As one of Japan's largest independent companies devoted to semiconductor assembly and test operations for customers, J-Devices believes that, to further expand its business, it must be cost-competitive with business rivals based outside of Japan. To that end, J-Devices believes it is of the utmost importance to extend the scale of its operations. The ownership transfer of the assembly and test facilities, therefore, is in line with the business objectives and views of both Fujitsu Semiconductor and J-Devices, leading to the signing of the agreement.
By the end of this year, ownership of FIM's Miyagi Plant and Aizu Plant is scheduled to be transferred to J-Devices, which will then take over the operation of these manufacturing facilities. All employees of the two plants are expected to be transferred to J-Devices.
In addition, FIM plans a staged transfer of equipment from its Kyushu Plant to J-Devices facilities also located in Kyushu, and ultimately will transfer all of its manufacturing capability. After the transfer is complete, the manufacturing currently conducted at FIM's Kyushu Plant will take place with the same standards for quality at J-Devices' facilities. Employees of FIM's Kyushu Plant are scheduled to be transferred to J-Devices or reassigned within the Fujitsu Group.
The products that are currently being manufactured at the assembly and test facilities to be transferred will be produced by J-Devices and will continue to be supplied to customers through Fujitsu Semiconductor.
Fujitsu Semiconductor designs, manufactures, and sells semiconductors, providing optimal solutions and support to meet the varying needs of its customers. Products and services include microcontrollers, ASICs, ASSPs, and power management ICs, with wide-ranging expertise focusing on mobile, ecological, automotive, imaging, security, and high-performance applications. The firm also drives power efficiency and environmental initiatives.
J-Devices is one of the largest independent semiconductor assembly and test companies in Japan with four factories in Kyushu island. The original company (named Nakaya Microdevices) was established in 1970 and offers a broad line-up of packages including thermally enhanced BGA, CMOS sensor, leadframe and other original packages. J-Devices offers skilled package development as well as the full turnkey "one stop" service such as wafer sorting, assembly, and final testing for consumer and automotive products.
