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Fujitsu Chip Unit Expects to Turn Profitable in December Quarter

March 9 (Bloomberg) -- Fujitsu Ltd., Japan’s largest computer-services provider, expects its system-chip unit to turn profitable as early as the third quarter next fiscal year on higher demand for digital cameras and smartphones.

Sales of system LSI, or large-scale integration, semiconductors may rise as the Olympics in London in July and August, and the U.S. presidential elections in November spur demand, Kiyoshi Watanabe, corporate senior vice president of Fujitsu Semiconductor Ltd., said in an interview today.

The wholly owned unit of Fujitsu, which had the third consecutive quarterly loss in the three months ended Dec. 31 after slower global growth depressed demand, expects sales to increase later this year.

“There are many events toward the second half of the year, so we expect the demand to increase,” said Watanabe, at the unit’s head office in Yokohama, Japan. “It’s said the demand increases in the Olympics year.”

System LSI chips are used for functions ranging from processing images for television screens to crunching data.

Fujitsu rose 1.6 percent to 444 yen at close on the Tokyo Stock Exchange. The stock has gained 11 percent this year, compared with a 17 percent increase in the benchmark Nikkei 225 Stock Average.

To contact the reporter on this story: Yuki Yamaguchi in Tokyo at

To contact the editor responsible for this story: Michael Tighe at

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