Fujitsu and Panasonic to Consolidate System LSI Businesses in New Company

  Fujitsu and Panasonic to Consolidate System LSI Businesses in New Company

Business Wire

TOKYO & OSAKA, Japan -- February 7, 2013

Fujitsu Limited ("Fujitsu") and Panasonic Corporation
(NYSE:PC)(TOKYO:6752)("Panasonic") today announced that the two companies have
signed a memorandum of understanding (MOU) to consolidate the design and
development functions of the system LSI businesses of Panasonic and Fujitsu
Semiconductor Limited ("Fujitsu Semiconductor"), a wholly owned subsidiary of
Fujitsu. With the backing of capital contributions from third-party investors,
Fujitsu and Panasonic will establish a new company under a fabless business
model, enabling LSI design and development functions. At the same time, the
two companies have agreed to discuss the transfer of business to the new
company. In establishing the new integrated company, Development Bank of Japan
Inc.("DBJ") has been asked to assist with investment and financing. Fujitsu
and Panasonic are currently engaged in detailed discussions with the goal of
promptly finalizing a contract.

1. Background and Objectives of the New Company

Fujitsu Semiconductor and Panasonic each possess advanced technologies and
significant intellectual property in the field of system LSI devices, and have
been supporting the products of customers both inside and outside Japan
through the provision of advanced system LSI devices.

In recent years, however, as market conditions have rapidly deteriorated and
overseas semiconductor manufacturers have risen in prominence, the system LSI
businesses of Fujitsu Semiconductor and Panasonic have been facing a severe
business environment.

In light of this situation, Fujitsu and Panasonic have both come to
acknowledge that bringing together their respective advanced technologies and
customer base is vital to build a competitive business globally. Focusing on
system LSI marketing, design and development under a fabless model, Fujitsu
and Panasonic aim to achieve future growth in system LSI businesses. For these
reasons, the two companies have agreed to discuss the establishment of a new
company.

With the new integrated company, Fujitsu and Panasonic plan to combine the
technological prowess that they have long accumulated, while concentrating new
investments on key fields to be a global top-level LSI company. Areas of focus
include 1) High-performance solutions (high-performance servers and core
technologies that support cloud infrastructure such as ultra-high-speed
networks), 2) Visual and imaging solutions (next-generation DTV, applications
for image recognition, etc.), and 3) Wireless solutions (mobile and extremely
low-power wireless connectivity solutions that support ubiquitous networks).
Deliberations are underway with DBJ regarding the procurement of investment
funding for increasing global competitiveness in key fields.

2. Outline of the Memorandum of Understanding (MOU)

The outline of the MOU signed by Fujitsu and Panasonic is described below.
Details regarding the new company have not been decided at the present time.

    
      Fujitsu and Panasonic will consolidate the design and development
      functions of the system LSI businesses of Panasonic and Fujitsu
      Semiconductor and, with the backing of capital contributions from
(1)   third-party investors, will establish a new company under a fabless
      business model, enabling LSI design and development functions. At the
      same time, the two companies have agreed to discuss the transfer of
      business to the new company.
      Based on the technologies, know-how, and customer bases of Fujitsu
(2)   Semiconductor and Panasonic, the new company will act as an independent
      entity and focus its management resources on product areas that are the
      forte of Fujitsu and Panasonic as it seeks to become a global leader.
      

3. Future Schedule

Fujitsu and Panasonic are currently engaged in detailed discussions with the
goal of promptly finalizing a contract.

About Fujitsu

Fujitsu is the leading Japanese information and communication technology (ICT)
company offering a full range of technology products, solutions and services.
Over 170,000 Fujitsu people support customers in more than 100 countries. We
use our experience and the power of ICT to shape the future of society with
our customers. Fujitsu Limited (TOKYO:6702) reported consolidated revenues of
4.5 trillion yen (US$54 billion) for the fiscal year ended March 31, 2012. For
more information, please see http://www.fujitsu.com.

About Panasonic

Panasonic Corporation is a worldwide leader in the development and manufacture
of electronic products in three business fields, consumer, components &
devices, and solutions. Based in Osaka, Japan, the company recorded
consolidated net sales of 7.85 trillion yen for the year ended March 31, 2012.
Panasonic's stock is listed on the Tokyo, Osaka, Nagoya and New York (NYSE:PC)
Stock Exchanges. The company has the vision of becoming the No. 1 Green
Innovation Company in the Electronics Industry by the 100th year of its
founding in 2018. For more information on Panasonic, its brand and commitment
to sustainability, visit the company's website at http://panasonic.net/.

All company or product names mentioned herein are trademarks or registered
trademarks of their respective owners. Information provided in this press
release is accurate at time of publication and is subject to change without
advance notice.

Contact:

Fujitsu Limited
Public and Investor Relations Division
Inquiries: https://www-s.fujitsu.com/global/news/contacts/inquiries/index.html
or
Panasonic Corporation
Corporate Finance & IR Group
Tel: +81-6-6908-1121
 
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