Market Report - Fujitsu Weighs Chip Options

WONG:
An now, today's Market Report:

STORY:
Fujitsu, a Japanese chips-to-computers conglomerate, expects nearly $1 billion in net profit this year, as it expands its IT consulting and outsourcing business.

But weak hard drive demand and falling chip prices have sparked talk of tie-ups or acquisitions for incoming president Kuniaki Nozoe.

[Kuniaki Nozoe, President-Designate, Fujitsu]:
"There's no need for an immediate decision, as market conditions are bad and we have to think about competition, but I think we will come to a decision soon."

Japanese newspapers reported in May that Toshiba wanted a majority stake in a Fujitsu's microchip unit, which supplies flat TVs, digital cameras and supercomputers.

Such ties, which Fujitsu denies, would likely expedite joint use of 32-nanometre technology, allowing more processing power on a smaller system chip.

Nozoe previously led Fujitsu's overseas software services, a lucrative sector expected to offset any impact from a stronger yen.

Category:

News & Politics

Tags:

• ntd
• market
• report
• fujitsu
• japan
• ecconomy
• commercial
• money