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Spansion buys Fujitsu's MCU, analog business

4/30/2013 11:24 AM EDT
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eewiz
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re: Spansion buys Fujitsu's MCU, analog business
eewiz   4/30/2013 12:20:49 PM
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interesting.. Spansion's cant make a profit of its current flash business and they are getting into new markets! if they are looking at the IOT market dont they need some sort of connectivity solutions? flash doesnt seems to be key for IOT. anyway fujitsu's mcu/analog business is valued at 110m and they have 65m in inventory. means a lot of unsold stuff :).

eewiz
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re: Spansion buys Fujitsu's MCU, analog business
eewiz   4/30/2013 12:20:49 PM
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interesting.. Spansion's cant make a profit of its current flash business and they are getting into new markets! if they are looking at the IOT market dont they need some sort of connectivity solutions? flash doesnt seems to be key for IOT. anyway fujitsu's mcu/analog business is valued at 110m and they have 65m in inventory. means a lot of unsold stuff :).

laketrash
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re: Spansion buys Fujitsu's MCU, analog business
laketrash   4/30/2013 1:33:12 PM
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Fujitsu's revenue for it analog and MCU business was $550 for 2012, and they are selling this to Spansion for $110 million (plus or minus for inventory). So what makes Spansion believe that they can take Fujitsu's underperforming business unit and turn it around??

laketrash
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re: Spansion buys Fujitsu's MCU, analog business
laketrash   4/30/2013 1:33:12 PM
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Fujitsu's revenue for it analog and MCU business was $550 for 2012, and they are selling this to Spansion for $110 million (plus or minus for inventory). So what makes Spansion believe that they can take Fujitsu's underperforming business unit and turn it around??

alex_m1
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re: Spansion buys Fujitsu's MCU, analog business
alex_m1   4/30/2013 3:03:13 PM
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I think spansion is working with UMC on 40nm embedded flash. Having 40nm microcontroller is a relatively unique advantage in a field which is in many ways commoditiezed. Also flash happened to take the most area(and cost) , and maybe power of a microcontroller. Maybe they know how to improve this.

alex_m1
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re: Spansion buys Fujitsu's MCU, analog business
alex_m1   4/30/2013 3:03:13 PM
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I think spansion is working with UMC on 40nm embedded flash. Having 40nm microcontroller is a relatively unique advantage in a field which is in many ways commoditiezed. Also flash happened to take the most area(and cost) , and maybe power of a microcontroller. Maybe they know how to improve this.

Peter Clarke
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re: Spansion buys Fujitsu's MCU, analog business
Peter Clarke   4/30/2013 3:56:28 PM
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@ippisl Yep Spansion is making a thing of its deal with UMC on 40-nm embedded flash on the spansion website

Peter Clarke
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re: Spansion buys Fujitsu's MCU, analog business
Peter Clarke   4/30/2013 3:56:28 PM
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@ippisl Yep Spansion is making a thing of its deal with UMC on 40-nm embedded flash on the spansion website

docdivakar
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re: Spansion buys Fujitsu's MCU, analog business
docdivakar   5/1/2013 2:07:41 AM
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To add to this, I fail to see how Spansion can expect to increase revenue as stated above "Spansion said it expects sales for the second quarter to increase to between $200 million and $220 million." If anything, the charge offs and cost of acquisition will be forcing Spansion to spread the loss to several quarters. It would be wise to spread that over those quarters which are profitable! MP Divakar

docdivakar
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re: Spansion buys Fujitsu's MCU, analog business
docdivakar   5/1/2013 2:07:41 AM
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To add to this, I fail to see how Spansion can expect to increase revenue as stated above "Spansion said it expects sales for the second quarter to increase to between $200 million and $220 million." If anything, the charge offs and cost of acquisition will be forcing Spansion to spread the loss to several quarters. It would be wise to spread that over those quarters which are profitable! MP Divakar

Kim_korea
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re: Spansion buys Fujitsu's MCU, analog business
Kim_korea   5/1/2013 3:13:38 AM
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cost of acquisition has no impact on sales revenue, yes it would impact their balance sheet definitely. but what is heartening to see is that here is a company who had filed for Chapter 11 couple of years back has turned around and making acquisitions. time will say how this is going to pan out but its a positive step in the right direction.

Kim_korea
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re: Spansion buys Fujitsu's MCU, analog business
Kim_korea   5/1/2013 3:13:38 AM
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cost of acquisition has no impact on sales revenue, yes it would impact their balance sheet definitely. but what is heartening to see is that here is a company who had filed for Chapter 11 couple of years back has turned around and making acquisitions. time will say how this is going to pan out but its a positive step in the right direction.

chanj0
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re: Spansion buys Fujitsu's MCU, analog business
chanj0   4/30/2013 5:27:53 PM
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Apparently, the acquisition is about the market share in the automotive industry. I would be more interested in knowing what is the next acquisition. I am sure there will be more Spansion's news in 2013.

chanj0
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re: Spansion buys Fujitsu's MCU, analog business
chanj0   4/30/2013 5:27:53 PM
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Apparently, the acquisition is about the market share in the automotive industry. I would be more interested in knowing what is the next acquisition. I am sure there will be more Spansion's news in 2013.

elizabethsimon
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re: Spansion buys Fujitsu's MCU, analog business
elizabethsimon   4/30/2013 6:32:15 PM
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From my point of view, Spansion has lost a lot of ground in NOR Flash for the industrial segment of the embedded market. From testing that I've done, their 65nm parts are inferior to their competition. I tested compatibility to previous 95nm parts and also endurance. Spansion came out on the bottom in both cases. Also, the sudden announcement that the 5V Flash was to be discontinued (because they didn't own the fab) did not engender continued confidence in Spansion as a supplier since they had been projecting that the 5V parts would continue to be available for years. I work for a company where we are still selling products designed 10 years ago and it seems that I spend most of my time finding replacements for obsolete parts. What we are looking for is suppliers with a commitment to supporting their parts for a 10 year life. Spansion no longer appears to have that commitment.

elizabethsimon
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re: Spansion buys Fujitsu's MCU, analog business
elizabethsimon   4/30/2013 6:32:15 PM
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From my point of view, Spansion has lost a lot of ground in NOR Flash for the industrial segment of the embedded market. From testing that I've done, their 65nm parts are inferior to their competition. I tested compatibility to previous 95nm parts and also endurance. Spansion came out on the bottom in both cases. Also, the sudden announcement that the 5V Flash was to be discontinued (because they didn't own the fab) did not engender continued confidence in Spansion as a supplier since they had been projecting that the 5V parts would continue to be available for years. I work for a company where we are still selling products designed 10 years ago and it seems that I spend most of my time finding replacements for obsolete parts. What we are looking for is suppliers with a commitment to supporting their parts for a 10 year life. Spansion no longer appears to have that commitment.

Shawnbloomer
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re: Spansion buys Fujitsu's MCU, analog business
Shawnbloomer   4/30/2013 8:28:01 PM
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Actually, Spansion has 10 year lifespan guaranteed for the NOR Flash devices. http://www.spansion.com/Products/Pages/LongTermMemory.aspx

Shawnbloomer
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re: Spansion buys Fujitsu's MCU, analog business
Shawnbloomer   4/30/2013 8:28:01 PM
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Actually, Spansion has 10 year lifespan guaranteed for the NOR Flash devices. http://www.spansion.com/Products/Pages/LongTermMemory.aspx

elizabethsimon
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re: Spansion buys Fujitsu's MCU, analog business
elizabethsimon   5/1/2013 4:23:23 PM
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Now why did I not hear about this from Spansion? In 2009, we asked Spansion for their recommendation for the best NOR Flash (series, size, package) for the future. After following their recommendation, the 65nm parts (with the same part number) have changed sufficiently that some of our products require Firmware changes. This has caused me to have less confidence in Spansion's commitment to the 10 year lifespan. My company still uses Spansion parts so I hope that this proves to be an isolated incident.

elizabethsimon
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re: Spansion buys Fujitsu's MCU, analog business
elizabethsimon   5/1/2013 4:23:23 PM
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Now why did I not hear about this from Spansion? In 2009, we asked Spansion for their recommendation for the best NOR Flash (series, size, package) for the future. After following their recommendation, the 65nm parts (with the same part number) have changed sufficiently that some of our products require Firmware changes. This has caused me to have less confidence in Spansion's commitment to the 10 year lifespan. My company still uses Spansion parts so I hope that this proves to be an isolated incident.

geekmaster
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re: Spansion buys Fujitsu's MCU, analog business
geekmaster   4/30/2013 7:13:52 PM
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How many of Fujitsu fabs will go to Spansion?

geekmaster
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re: Spansion buys Fujitsu's MCU, analog business
geekmaster   4/30/2013 7:13:52 PM
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How many of Fujitsu fabs will go to Spansion?

Peter Clarke
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re: Spansion buys Fujitsu's MCU, analog business
Peter Clarke   5/1/2013 9:08:17 AM
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No manufacturing facilities will go to Fujitsu.

Peter Clarke
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re: Spansion buys Fujitsu's MCU, analog business
Peter Clarke   5/1/2013 9:08:17 AM
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No manufacturing facilities will go to Fujitsu.

Peter Clarke
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re: Spansion buys Fujitsu's MCU, analog business
Peter Clarke   5/1/2013 9:09:27 AM
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i mean from Fujitsu to Spansion

Peter Clarke
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re: Spansion buys Fujitsu's MCU, analog business
Peter Clarke   5/1/2013 9:09:27 AM
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i mean from Fujitsu to Spansion

EFosters
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re: Spansion buys Fujitsu's MCU, analog business
EFosters   4/30/2013 7:26:36 PM
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My experience with Spansion is quite different than the last post (maybe from competition?). Without breaking company NDAs, I can say Spansion's 65nm products are there best yet. They've done a lot at the chip level to provide a very robust solution. We use both parallel and serial devices from Spansion and appreciate their performance levels. In terms of read, write and erase nobody can compete. Their NOR products are industry leading. NOR is not a huge growth area so I find this acquisition intriguing. Fujitsu is not a big player and their portfolio is a bit behind others in auto like Freescale and Renesas. It'll be interesting to see where they take the products. More memory embedded with MCUs is definitely needed. In terms of acquisitions this should be an easy one for the two companies given their close history over the past couple decades.

EFosters
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re: Spansion buys Fujitsu's MCU, analog business
EFosters   4/30/2013 7:26:36 PM
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My experience with Spansion is quite different than the last post (maybe from competition?). Without breaking company NDAs, I can say Spansion's 65nm products are there best yet. They've done a lot at the chip level to provide a very robust solution. We use both parallel and serial devices from Spansion and appreciate their performance levels. In terms of read, write and erase nobody can compete. Their NOR products are industry leading. NOR is not a huge growth area so I find this acquisition intriguing. Fujitsu is not a big player and their portfolio is a bit behind others in auto like Freescale and Renesas. It'll be interesting to see where they take the products. More memory embedded with MCUs is definitely needed. In terms of acquisitions this should be an easy one for the two companies given their close history over the past couple decades.

Kevin Krewell
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re: Spansion buys Fujitsu's MCU, analog business
Kevin Krewell   4/30/2013 9:32:15 PM
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At long last Spansion realizes that being a pure-play memory provider is not a long-term growth prospect. Next step for the company is to discontinue Fujitsu architecture and take a Cortex-M license from ARM. There is a negative to this move - it will put Spansion in competition with its MCU ecosystem partners. I'm also not sure the present management team is up to the challenge of this new market - none of them have experience in the MCU business.

Kevin Krewell
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re: Spansion buys Fujitsu's MCU, analog business
Kevin Krewell   4/30/2013 9:32:15 PM
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At long last Spansion realizes that being a pure-play memory provider is not a long-term growth prospect. Next step for the company is to discontinue Fujitsu architecture and take a Cortex-M license from ARM. There is a negative to this move - it will put Spansion in competition with its MCU ecosystem partners. I'm also not sure the present management team is up to the challenge of this new market - none of them have experience in the MCU business.

alex_m1
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re: Spansion buys Fujitsu's MCU, analog business
alex_m1   4/30/2013 9:48:31 PM
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There seem to be a huge land grab for new process embedded flash:renesas talking about 40nm/28nm, infineon going for 40nm, altera for 55nm and now spansion for 40nm. Most of those will go to mcu's. Anybody knows what applications are driving all this and why ?

alex_m1
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re: Spansion buys Fujitsu's MCU, analog business
alex_m1   4/30/2013 9:48:31 PM
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There seem to be a huge land grab for new process embedded flash:renesas talking about 40nm/28nm, infineon going for 40nm, altera for 55nm and now spansion for 40nm. Most of those will go to mcu's. Anybody knows what applications are driving all this and why ?

PRGalLinda
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re: Spansion buys Fujitsu's MCU, analog business
PRGalLinda   4/30/2013 10:00:49 PM
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Disclosure: I am a Spansion employee. Thank you EFoster for sharing your positive experience here. We find that’s more reflective of the typical customer experience. To answer the Fab question posed: We are not purchasing any of the Fujitsu fabs. They will serve as a foundry. Regarding the applications, we are seeing the demand in embedded applications such as automotive and industrial.

PRGalLinda
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re: Spansion buys Fujitsu's MCU, analog business
PRGalLinda   4/30/2013 10:00:49 PM
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Disclosure: I am a Spansion employee. Thank you EFoster for sharing your positive experience here. We find that’s more reflective of the typical customer experience. To answer the Fab question posed: We are not purchasing any of the Fujitsu fabs. They will serve as a foundry. Regarding the applications, we are seeing the demand in embedded applications such as automotive and industrial.

Kim_korea
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re: Spansion buys Fujitsu's MCU, analog business
Kim_korea   5/1/2013 3:06:17 AM
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this to me seems a good move. as the memory capacity is going to increase within a MCU / SOC. being the leader in NOR memory and with the new eCT memory(launched with UMC) Spansion is well poised to integrate and able to sell as a Programmable System Solution. The eCT will give an big advantage to SPansion. Since Spansion was in a declining NOR market and needed to diversify to increase its SAM, this is a good acquisition provided they are able move fast to develop solutions and offer to the market.

Kim_korea
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re: Spansion buys Fujitsu's MCU, analog business
Kim_korea   5/1/2013 3:06:17 AM
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this to me seems a good move. as the memory capacity is going to increase within a MCU / SOC. being the leader in NOR memory and with the new eCT memory(launched with UMC) Spansion is well poised to integrate and able to sell as a Programmable System Solution. The eCT will give an big advantage to SPansion. Since Spansion was in a declining NOR market and needed to diversify to increase its SAM, this is a good acquisition provided they are able move fast to develop solutions and offer to the market.

Indoamerican_Sikh
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re: Spansion buys Fujitsu's MCU, analog business
Indoamerican_Sikh   5/1/2013 7:18:26 PM
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So why did the established MCU players such as Freescale, Microchip, NXP or Atmel not buy the Fujitsu business ? Surely Microchip has plenty of cash and this would have been a steal; Probably TI is still busy integrating the National Semi biz. Spansion will now need to get into the ARM Cortex Sub $ 1 market in which they have little experience;

Indoamerican_Sikh
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re: Spansion buys Fujitsu's MCU, analog business
Indoamerican_Sikh   5/1/2013 7:18:26 PM
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So why did the established MCU players such as Freescale, Microchip, NXP or Atmel not buy the Fujitsu business ? Surely Microchip has plenty of cash and this would have been a steal; Probably TI is still busy integrating the National Semi biz. Spansion will now need to get into the ARM Cortex Sub $ 1 market in which they have little experience;

Peter Clarke
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re: Spansion buys Fujitsu's MCU, analog business
Peter Clarke   5/1/2013 7:40:59 PM
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I guess if you are already in the microcontroller market buying another microcontroller business does not look like a lot of value....but if you are in the memory market and need to get into the MCU market it does look like value.

Peter Clarke
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re: Spansion buys Fujitsu's MCU, analog business
Peter Clarke   5/1/2013 7:40:59 PM
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I guess if you are already in the microcontroller market buying another microcontroller business does not look like a lot of value....but if you are in the memory market and need to get into the MCU market it does look like value.

JohnM555
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re: Spansion buys Fujitsu's MCU, analog business
JohnM555   5/2/2013 8:14:34 AM
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Take out Freescale from that list. They are pretty busy paying their mountain of debt. The quarterly interest on the debt makes them constantly on negative earnings for the last almost 2 years. They can hardly make a move.

JohnM555
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re: Spansion buys Fujitsu's MCU, analog business
JohnM555   5/2/2013 8:14:34 AM
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Take out Freescale from that list. They are pretty busy paying their mountain of debt. The quarterly interest on the debt makes them constantly on negative earnings for the last almost 2 years. They can hardly make a move.

C VanDorne
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re: Spansion buys Fujitsu's MCU, analog business
C VanDorne   5/1/2013 7:51:21 PM
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It worked for Atmel.

C VanDorne
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re: Spansion buys Fujitsu's MCU, analog business
C VanDorne   5/1/2013 7:51:21 PM
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It worked for Atmel.

Kim_korea
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re: Spansion buys Fujitsu's MCU, analog business
Kim_korea   5/2/2013 1:26:32 AM
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memory is going to play a critical role in future MCU /SOC development. Microchip had acquired SST to gain access to the Flash technology. Microchip had to fork out ~100M$ (though actual deal was 275M$). here it is the other way round, a memory company acquiring a MCU and Analog business. does make sense.

Kim_korea
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re: Spansion buys Fujitsu's MCU, analog business
Kim_korea   5/2/2013 1:26:32 AM
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memory is going to play a critical role in future MCU /SOC development. Microchip had acquired SST to gain access to the Flash technology. Microchip had to fork out ~100M$ (though actual deal was 275M$). here it is the other way round, a memory company acquiring a MCU and Analog business. does make sense.

resistion
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re: Spansion buys Fujitsu's MCU, analog business
resistion   5/2/2013 9:49:56 AM
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I'm pretty sure you can't practically fit so many MB flash on a chip embedded with other designs even at 40 nm. But I am curious if there is a growing need to.

resistion
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re: Spansion buys Fujitsu's MCU, analog business
resistion   5/2/2013 9:49:56 AM
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I'm pretty sure you can't practically fit so many MB flash on a chip embedded with other designs even at 40 nm. But I am curious if there is a growing need to.

sw guy
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re: Spansion buys Fujitsu's MCU, analog business
sw guy   5/3/2013 3:32:38 PM
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Or maybe the other way round: what and how many features of interest can you fit into a flash chip ?

sw guy
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re: Spansion buys Fujitsu's MCU, analog business
sw guy   5/3/2013 3:32:38 PM
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Or maybe the other way round: what and how many features of interest can you fit into a flash chip ?

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