Fujitsu to transfer Iwate fab to Denso
5/1/2012 12:09 PM EDT
SAN FRANCISCO— Fujitsu Semiconductor Ltd. will transfer ownership of an older fab that produces microcontrollers to Denso Corp. to Japanese automotive parts supplier Denso Corp. under the terms of an agreement announced last week.
Fujitsu (Yokohama, Japan) said the transition of ownership consists of the land, building and ownership for the fab, located in Iwate, Japan. After the transition, expected to be completed by Oct. 1, the Iwate fab will operate as a wholly owned subsidiary of Denso, Fujitsu said. Financial terms of the deal were not disclosed.
According to Fujitsu, Denso decided to acquire an additional chip fab to supplement its two existing fabs—both located in Aichi, Japan—in order to better serve customer needs.
Fujitsu, meanwhile, has been striving to move to a fab-lite business model, as announced in 2009. Fujitsu said that, in the current economic environment, one of the management challenges the company faces was how to optimize manufacturing resources while continuing to ensure a stable supply of products to customers. These factors led to the signing of the deal with Denso, Fujitsu said.
The products that are currently being made at the Iwate Plant will be produced at Denso's new subsidiary and will continue to be supplied to customers through Fujitsu Semiconductor with the same high standards for quality, delivery and service, Fujitsu said. The new Denso subsidiary will also produce semiconductors to better meet increased demands from Denso customers, Fujitsu said.
The Iwate fab was one of several Fujitsu fabs knocked off line by the devastating earthquake and tsunami that struck Japan last March. The Iwate fab was idle for more than a month before production was restored.
The Iwate fab was first opened in 1980.