December 29, 2003
Fujitsu, Sumitomo in compound chip joint venture
Company to create devices for telecom infrastructure
Recommend ThisFujitsu Ltd. is consolidating its compound semiconductor operations with those of Sumitomo Electric Industries Ltd. in a joint venture aimed at creating devices for the telecommunications infrastructure, enterprise and digital home application markets.
Under the agreement, announced Thursday, Fujitsu's Quantum Devices Limited subsidiary will merge with the electronic devices business of Sumitomo's compound semiconductor operations. The 50-50 joint venture is slated to be operational April 1, 2004.
The companies hope that the combination of Sumitomo Electric's strength in materials technologies and Fujitsu's experience in the telecommunications infrastructure market will allow them to create a variety of compound semiconductor technologies for broadband and wireless communications, digital home applications, information terminals and Internet protocol-based networking.
The joint venture will target key markets in the U.S., Europe, Japan and China, the companies said.
No financial details of the deal were immediately disclosed.
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