Fujitsu, other Japanese firms set up smartphone chip JV

JAPAN: Fujitsu, Fujitsu Semiconductor, NTT Docomo and NEC have established a smartphone chip joint venture named Access Network Technology. This joint venture will develop and sell chips used in smartphones. The joint venture plans to outsource production of chips that control wireless communications and signals. The operations are scheduled to begin in August and the capital is contributed by Docomo, NEC and Fujitsu semiconductor.

The new JV will also concentrate on developing products for high speed Long Term Evolution (LTE) networks and advanced network technology. Through this joint venture, the Japanese companies are aiming at reducing their reliance on Qualcomm (holding 70 to 80 per cent of core smartphone microchip market) which ran into a capacity shortfall at contract manufacturer Taiwan Semiconductor Manufacturing Co. (TSMC). This situation had landed the smartphone and tablet market with supply uncertainty this year.

As per the joint statement by companies, Fujitsu will own 52.8 per cent of Access Network Technology Ltd. NTT Docomo and NEC will acquire 19.9 per cent and 17.8 per cent, respectively, of the company, while Fujitsu Semiconductor Ltd will own the remaining  9.5 per cent.