Tokyo, June 21, 2000 -- NKK Corporation and Fujitsu Limited announced
today that they have reached a basic agreement to transfer NKK's
advanced LSI design and development operations to Fujitsu, which plans
to establish a wholly owned subsidiary to focus on system LSI (system-
on-chip) design and development work. The subsidiary is slated to start
operation in October this year, pending a detailed transfer contract to be
concluded between NKK and the new company in August.
The agreement marks NKK's decision to withdraw from the electronic
devices business. NKK had previously targeted LSI design and
development as one of its business areas for the future, but has since
concluded that Fujitsu could make wider and more efficient use of the
LSI design technologies and resources it has accumulated over the years.
Fujitsu intends to utilize this opportunity to augment its LSI design and
development capabilities by establishing a new subsidiary that will quickly
bring to market system LSI products for the rapidly growing next-
generation mobile terminal device and large-capacity, high-performance
network equipment markets.
Capitalizing on Fujitsu's cutting-edge technologies, such as high-speed
interfaces, large-scale LSI design and high-speed multiple pin packaging,
the new subsidiary plans to design, develop and service system LSI
products for worldwide markets. Particular focus will be put on high-
performance, large-scale system LSIs for network markets, including
LAN and WAN markets, as well as FR-V processors at the core of
system LSIs for next-generation mobile terminals, digital AV and
set-top boxes.
The new company, which will be 100% owned by Fujitsu, will be based in
Kawasaki City in Kanagawa Prefecture. It will be capitalized at 400 million
yen and initially employ approximately 70 people.
About NKK Corporation
NKK Corporation (TSE: 5404) is one of Japan's foremost companies in
the field of heavy industry. Founded in 1912 as Japan's first
manufacturer of seamless pipes, NKK expanded over the years into
steelmaking, shipbuilding, steel fabrication, construction, industrial
machinery, and engineering. By relying on its own technological and
management skills for success, NKK has developed a pioneer spirit that
is still very much alive in its diverse operations. The company had
consolidated net sales of 1,685.3 billion yen (US$15.9 billion) in the
fiscal year ended March 31, 2000.
Internet: http://www.nkk.co.jp/
About Fujitsu Limited
Fujitsu Limited (TSE: 6702) is a leading provider of Internet-based
information technology solutions for the global marketplace.
Comprising over 500 group companies and affiliates worldwide --
including ICL, Amdahl and DMR Consulting -- it had consolidated
revenues of 5.26 trillion yen (US$49.6 billion) in the fiscal year
ended March 31, 2000. Fujitsu's pace-setting technologies,
world-class computing and telecommunications platforms, and
global corps of over 60,000 systems and services experts make it
uniquely positioned to unleash the infinite possibilities of the
Internet to help its customers succeed. Altogether, the Fujitsu
Group has 188,000 employees and operations in over 100 countries.
Internet: http://www.fujitsu.com/
Fujitsu: The Possibilities Are Infinite
* All company/product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purpose only.