Spansion to Buy Fujitsu Microcontrollers for $110 Million
Spansion Inc. (CODE), a producer of flash memory for electronics systems, agreed to buy Fujitsu Ltd. (6702)’s microcontroller operations for $110 million to gain the chipmaker’s employees, intellectual property and products.
Spansion will also pay about $65 million for inventory, the Sunnyvale, California-based company said in a statement today. The deal with Tokyo-based Fujitsu is expected to be completed between July and September, it said.
Fujitsu, Japan’s biggest provider of computer services to companies, is focusing on information technology including cloud computing to weather a slump in chip sales used in televisions and other electronics. Fujitsu also said it plans transfer 1,000 employees to Spansion.
A microcontroller is a chip that, for example, triggers air bags in cars. Large-scale integration, or LSI, chips pack several functions, including processing TV images, onto a single semiconductor. Both are used in products from automobiles to consumer electronics.
Fujitsu rose 0.3 percent to 409 yen in Tokyo trading, before the announcement, extending this year’s gain to 14 percent. The benchmark Nikkei 225 Stock Average has risen 33 percent in 2013.
Separately, the company said it expects net income of 45 billion yen this fiscal year, after reporting a 72.9 billion yen loss in the year ended March 31, according to a statement from the company today. Sales will probably rise 3.8 percent to 4.55 trillion yen this fiscal year, after dropping 1.9 percent to 4.38 trillion yen in the previous 12 months.
Fujitsu, which also makes mobile phones and personal computers, in February said it would merge its LSI chip business with that of Panasonic Corp. (6752) The venture will design large-scale integration, or LSI , and contract out their manufacture, the companies said at the time
Fujitsu said in February it may move a production line in Japan’s Mie Prefecture to a new chip foundry and is in talks with Taiwan Semiconductor Manufacturing Co. (2330) to set up a chipmaking venture.
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