Panasonic, Fujitsu to form chip design, development company

TOKYO Wed Apr 23, 2014 1:03pm IST

People are reflected in a sign at Panasonic Center Tokyo in Tokyo March 12, 2014. REUTERS/Toru Hanai/Files

People are reflected in a sign at Panasonic Center Tokyo in Tokyo March 12, 2014.

Credit: Reuters/Toru Hanai/Files

Related Topics

Stocks

   

TOKYO (Reuters) - Panasonic Corp and Fujitsu Ltd said on Wednesday that they would integrate part of their operations to form an independent company to design and develop system LSI chips, in which both companies will own a share.

Fujitsu will own 40 percent of voting rights in the new firm, the same proportion as the state-owned Development Bank of Japan Inc (DBJ), which will provide a maximum investment of 20 billion yen ($194.9 million) in equity capital and a maximum credit line of 10 billion yen for the new company. Panasonic will own the remaining 20 percent.

The new company will be a fabless semiconductor manufacturer and will focus on product planning, marketing and development, with a view to launching an initial public offering within several years, the companies said in a statement.

A final agreement on the details of the deal is expected to be completed by the end of the current quarter, which finishes in June. Panasonic and Fujitsu said they had agreed to name Yasuo Nishiguchi, the former president of Kyocera, as CEO of the new company.

($1 = 102.6000 Japanese Yen)

(Reporting by Sophie Knight; Editing by Dominic Lau)

FILED UNDER:

TECH WRAP

Photo

Exclusive - Obama sharply criticizes China's plans for new technology rules

Barack Obama sharply criticized China's plans for new rules on U.S. tech companies, urging Beijing to change the policy if it wants to do business with the United States and saying he had raised it with President Xi Jinping.  Full Article 

Reuters Showcase

Indian Healthcare

Indian Healthcare

Exclusive - Payment delays dent India's flagship health, AIDS programmes  Full Article 

India-Pakistan Ties

India-Pakistan Ties

Indian, Pakistani foreign secretaries to meet in Islamabad.  Full Article 

Jaitley Speaks

Jaitley Speaks

India needs sustained GDP growth of 9-10 percent - Jaitley.  Full Article 

Obama Interview

Obama Interview

Exclusive - Nemtsov killing sign of worsening climate in Russia: Obama.  Full Article 

Environment Concerns

Environment Concerns

Deforestation could shift monsoons, leaving India high and dry.  Full Article 

Forbes Rich List

Forbes Rich List

Bill Gates tops Forbes rich list, Michael Jordan joins.  Full Article 

New Tour

New Tour

Pop icon Madonna announces dates for 'Rebel Heart' tour.  Full Article 

Lathmar Holi

In Pics: Lathmar Holi

Images of "Lathmar Holi" at Nandgaon in Uttar Pradesh.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage