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Thursday, April 01, 2004
Fujitsu, Sumitomo electric launch chip joint venture


Japan's largest computer maker Fujitsu and electric cable maker Sumitomo Electric Industries said they have launched a joint venture to make compound semiconductors used for mobile phones, DVD players and other home appliances.

Capitalized at 19.5 billion yen (190 million dollars), the 50-50 joint venture, Eudyna Devices Inc., will develop, manufacture and market compound semiconductors -- integrated circuit (IC) chips made of such materials as gallium arsenide instead of silicon.

The two companies reached a basic agreement on the new venture combining their existing compound semiconductor businesses in December.

Eudyna, which employs about 1,100 people, aims for 30 billion yen in sales in the current financial year to March 2005 and it hopes to establish itself as the world's top compound semiconductor maker.


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