On February 8, Japanese media reported that Renesas Electronics, Fujitsu, and Panasonic have started negotiations on the merger of the main semiconductor business. According to the report, the three companies will separate their respective system LSI (SoC) business, and the industrial innovation organization will fund the establishment of a semiconductor design company. At the same time, it will also consider establishing a new semiconductor foundry company.
Renesas Electronics and Fujitsu issued separate statements on this report. The main purpose of both parties' declaration is that "the content of the report is not published by the company and there is no definitive conclusion at the moment." There is no denial of the content of the report.
"The fundamental improvement of the SoC business is undoubtedly a major issue for major Japanese semiconductor manufacturers." A related person from a Japanese semiconductor manufacturer commented on the current status of major companies. In the three companies mentioned in this report, their SoC business continued to be low due to the use of digital consumer products.
In the past two to three years, major Japanese companies changed the cutting-edge SoC manufacturing with heavy investment burdens to the business model of outsourcing, but the effect did not appear. The current situation is that the companies that are the mainstay of the products for ASICs targeting Japanese OEMs continue to be in a downturn with the entire manufacturers. With the declining sales prices of digital consumer products, East Asia's fabless companies have played an advantage in SoCs for digital consumer products.
The Great East Japan Earthquake in 2011, the European economic crisis and the continued appreciation of the yen are likely to be the decisive factors that will prompt Japanese semiconductor companies to thoroughly reform SoC business. Fujitsu acknowledged in its press release that "we are exploring all possibilities to improve the semiconductor business." This is also true of Japanese companies. The cooperation of the three companies reported this time may be one of the most powerful options for exploring the development path of the Japanese semiconductor industry.
Renesas Electronics and Fujitsu issued separate statements on this report. The main purpose of both parties' declaration is that "the content of the report is not published by the company and there is no definitive conclusion at the moment." There is no denial of the content of the report.
"The fundamental improvement of the SoC business is undoubtedly a major issue for major Japanese semiconductor manufacturers." A related person from a Japanese semiconductor manufacturer commented on the current status of major companies. In the three companies mentioned in this report, their SoC business continued to be low due to the use of digital consumer products.
In the past two to three years, major Japanese companies changed the cutting-edge SoC manufacturing with heavy investment burdens to the business model of outsourcing, but the effect did not appear. The current situation is that the companies that are the mainstay of the products for ASICs targeting Japanese OEMs continue to be in a downturn with the entire manufacturers. With the declining sales prices of digital consumer products, East Asia's fabless companies have played an advantage in SoCs for digital consumer products.
The Great East Japan Earthquake in 2011, the European economic crisis and the continued appreciation of the yen are likely to be the decisive factors that will prompt Japanese semiconductor companies to thoroughly reform SoC business. Fujitsu acknowledged in its press release that "we are exploring all possibilities to improve the semiconductor business." This is also true of Japanese companies. The cooperation of the three companies reported this time may be one of the most powerful options for exploring the development path of the Japanese semiconductor industry.
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