In their effort to go fabless Japanese electronics companies Fujitsu and Panasonic had decided to merge their IC chip businesses but was not going much further until this new announcement, where the merged chip business which is going to be a fabless got the investment support from Development Bank of Japan. , Inc. (DBJ).
Fujitsu Semiconductor together with Panasonic's system LSI business are now part of the new company where Fujitsu and Panasonic receiving shares in the new company equivalent to the value of their respective contributions.
DBJ to make a maximum investment of 20.0 billion yen in equity capital in the new company and will provide a maximum credit line of 10.0 billion yen to the new company. Ratio of voting held by Fujitsu, Panasonic and DBJ in the new company will be 40%, 20%, and 40%, respectively. The new company to operate independently.
After formal merger procedures and any approvals the new business is scheduled to take place in the third quarter of fiscal 2014.
Yasuo Nishiguchi, former president and representative director of Kyocera Corporation is going to be the CEO of new company.
The new company to place priority in technological areas with high growth potential such as cloud computing, big-data, and optical networks as well as in the fields of medical equipment and energy, stated in the release.