August 1 Japan's Fujitsu Ltd, NTT
DoCoMo Inc and NEC Corp will on Wednesday
launch a new company to make smartphone chips, the Nikkei
newspaper reported on Wednesday.
Fujitsu will own more than 50 percent of Access Network
Technology Ltd, expected to compete with market leader Qualcomm
Inc, the business daily said.
DoCoMo and NEC will each acquire about 20 percent of the
company, while Fujitsu Semiconductor Ltd will own the remaining
10 percent, the paper said.
The new company will develop and sell chips that control
wireless communications and signals, while production will be
outsourced, the Japanese daily said.
Qualcomm is estimated to command 70 to 80 percent of the
market for core microchips for smartphones, the daily added.
The three Japanese firms aim to reduce their reliance on the
U.S. firm and secure a stable supply through the venture, the
The venture will also help the companies to gain greater
freedom in chip development and enable them to supply to other
smartphone makers in the future, the report said.
Access Network Technology will develop products for the LTE
(Long Term Evolution) market and pursue next-generation
high-speed technologies, the Nikkei added.
Fujitsu had initially planned to establish the company on
its own by spinning off of its access network development
business, the daily said.