Fujitsu Semiconductor to transfer ownership of Iwate plant to DENSO Corp

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DENSO Corp and Fujitsu Semiconductor Limited have signed an agreement stating Fujitsu Semiconductor will transfer ownership of its Iwate Plant, which is located in Iwate, to DENSO. The transition of ownership, which consists of the land, building, equipment and employees, will be completed on Oct 1, 2012. After this time, the plant will operate as a wholly owned subsidiary of DENSO.

With advancements in automotive fuel efficiency and emissions technologies, and a greater need for advanced safety systems, there is an increased demand for the production of more diversified semiconductor components. To better help customer needs, DENSO decided to acquire an additional semiconductor production facility to supplement its two existing semiconductor plants, both located in Aichi, Japan.

For its part, Fujitsu Semiconductor has been striving to enhance its business foundation and improve corporate management by pursuing the rapid introduction of a unique “fab-lite” business model, as announced in 2009. Also, in the current economic environment, one of the management challenges the company faced was how to optimize manufacturing resources while continuing to ensure a stable supply of products to customers.

Taking these circumstances into account, the transition of ownership supports and aligns with both Fujitsu’s and DENSO’s business objectives and views, which led to the signing of the agreement.

The products that are currently being made at the Iwate plant will be produced at DENSO’s new subsidiary and will continue to be supplied to customers through Fujitsu Semiconductor with the same high standards for quality, delivery, and service. In addition, the new DENSO subsidiary will produce diversified and high-quality semiconductors to better meet increased demands from DENSO customers.