Fujitsu Ltd. said it plans to merge its four semiconductor back-end assembly and test subsidiaries in Japan into a newly formed company to reduce costs and improve its competitive position.
The new company, to be called Fujitsu Integrated Microtechnology Ltd., will be formed on Oct. 1 and will have annual sales of approximately $264 million, Fujitsu said.
Fujitsu Integrated is expected to offer assembly and test services to server and networking equipment manufacturers as well as customers in the consumer electronics and automotive industries.
The four companies to be merged into the new wholly owned Fujitsu IC test and assembly company are Fujitsu Tohoku Electronics Ltd., Fujitsu Miyagi Electronics Ltd., Kyushu Fujitsu Electronics Ltd., and the manufacturing operations in Gifu Prefecture of Fujitsu VLSI Ltd.
"Through higher efficiencies in R&D and production, improved cost competitiveness, and enhanced services, Fujitsu's goal in this reorganization of its back-end fabrication is to deliver optimal chip package solutions to its customers," Fujitsu said, in a statement.
Teiichi Endo, current president of Fujitsu Tohoku, will head Fujitsu Integrated.