Fujitsu today announced that it has come to an agreement with TDK to terminate their strategic business alliance in regard to hard disk drive heads.
In conjunction, the companies will dissolve their joint-venture agreement regarding HDD head manufacturer TDK FUJITSU Philippines Corporation ("TFPC"; 66% owned by TDK and 34% owned by Fujitsu).
In October 2004, Fujitsu and TDK signed a business alliance agreement on the HDD head business. In order to build a structure for technological cooperation, the two companies established the joint-venture TFPC in December 2004 to process and assemble HDD heads. Recently, however, Fujitsu decided to exit the HDD head and HDD businesses, and therefore the two companies have agreed to terminate the business alliance and dissolve the joint-venture agreement.
The TFPC joint-venture agreement will be dissolved, and the company will become a wholly owned subsidiary of TDK, the companies announced.