Panasonic (News - Alert) Corporation and Fujitsu Limited have unveiled that they’ve entered into a partnership to consolidate their system of LSI businesses of Panasonic and the Fujitsu (News - Alert) Semiconductor subsidiary. The companies signed a memorandum of understanding to work together on the design and development functions of these two systems, under a new company the two companies will establish together for the project.
The new company is as of now unnamed, but its business plan is finished and creates a solid way to move forward in this new venture. The project is now backed by capital contributions from third-party investors, with Development Bank of Japan Inc. assisting with investment and financing throughout.
The contract is not finalized yet, but Fujitsu and Panasonic are ironing out the details to move past the memorandum of understanding and get the project officially underway.
The memorandum of understanding states that Fujitsu and Panasonic “have agreed to discuss the transfer of business to the new company,” and “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.”
One of the reasons these companies have decided on partnering to form this new company is that market conditions have deteriorated consistently in recent years, and overseas semiconductor manufacturers are on the rise and becoming much more prominent than they have been previously. This creates more competition for Fujitsu and Panasonic, so the companies hope that joining together will help improve their business in the LSI and semiconductor industry.
With the technology of one and the customer base of the other, Fujitsu and Panasonic are understandably positive of the potential global success of the new company.
The company will reportedly focus at the beginning on system LSI marketing, design and development, with areas of focus including high performance solutions, visual and imaging solutions, and wireless solutions.