Fujitsu and Panasonic to Consolidate System LSI Businesses in Ne

Fujitsu and Panasonic to Consolidate System LSI Businesses in New Company 
Tokyo/Osaka, Feb 7, 2013 - (JCN Newswire) -  Fujitsu Limited
("Fujitsu") and Panasonic Corporation  ([NYSE:PC/TSE: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
JapanInc.("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 field. 
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. 
(1) 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 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. 
(2) Based on the technologies, know-how, and customer bases of Fujitsu
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 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/. 
About Fujitsu Limited 
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 (TSE: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 www.fujitsu.com. 
Contact: 
Fujitsu Limited
Public and Investor Relations Division
www.fujitsu.com/global/news/contacts/ 
Panasonic Corporation
Corporate Finance & IR Group
Tel: +81-6-6908-1121 
Copyright 2013 JCN Newswire. All rights reserved. www.japancorp.net 
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