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Fujitsu to Purchase Semiconductor Fabs in Japan from Spansion

Purchase of fabs JV1 and JV2 will reinforce Fujitsu’s standard logic LSI device business

Fujitsu Limited

Tokyo, September 28, 2006

Fujitsu Limited today announced that it has signed an agreement today with Spansion Japan Limited to purchase Spansion Japan's semiconductor fabs in Japan known as JV1 and JV2, located in the city of Aizu-Wakamatsu in Fukushima prefecture of northeastern Japan. As an extension of Fujitsu's ongoing business strategy of focusing on logic large-scale integrated circuit (LSI) devices, in addition to production of advanced logic LSI devices at its 300mm fab in Mie, Japan, as part of its strategy to reinforce its standard logic LSI device business Fujitsu will increase production at JV1 and JV2 with a focus on production of flash memory-embedded microcontrollers that anticipated to see market growth. For the immediate future, Fujitsu will continue to manufacture certain flash memory products for Spansion that are currently manufactured at fabs JV1 and JV2 under their foundry arrangement.

Of the semiconductor fabs in Japan owned by Spansion Japan, targeting purchase in the first quarter of fiscal 2007, Fujitsu will purchase fabs JV1 and JV2, both which are located adjacent to Fujitsu's Aizu-Wakamatsu fab. The purchase amount is approximately 17 billion yen, including the building, machinery for power generation, and production facilities.

The market for flash memory-embedded microcontrollers for automotive and consumer devices is experiencing rapid growth, with future growth foreseen as well. Currently, Fujitsu manufactures such microcontrollers at its Iwate fab, and at Spansion's JV1 and JV2 fabs through a foundry arrangement. Owning fabs JV1 and JV2, which feature major-scale production lines, will enable Fujitsu to offer even greater supply and stability to the growing product demand from its customers. In addition to the aforementioned products, Fujitsu will also manufacture other logic LSI devices at JV1 and JV2.

About Fujitsu

Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting device technologies, highly reliable computing and communications products, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of about 4.8 trillion yen (US$40.6 billion) for the fiscal year ended March 31, 2006. See for further information.

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Date: 28 September, 2006
City: Tokyo
Company: Fujitsu Limited, , , , ,