Fujitsu Semiconductor Limited and J-Devices Corp. has announced they have signed an agreement in which Fujitsu Semiconductor will transfer ownership of chip assembly and test facilities belonging to Fujitsu Integrated Microtechnology to J-Devices. The objective of the agreement is for Fujitsu and J-Devices to build a long-term, mutually beneficial strategic partnership in the semiconductor manufacturing business.

Fujitsu Semiconductor has been striving to enhance its business foundation and improve corporate management by pursuing a "fab-lite" business model, as announced in 2009. As part of these efforts, Fujitsu Semiconductor has been optimizing its manufacturing resources in accordance with changes in the economic and business environment. As Japan's largest independent company devoted to semiconductor assembly and test operations for customers, J-Devices understands that, to further grow its business, it must be cost-competitive with business rivals based outside of Japan. To that end, J-Devices believes it is of the utmost importance to expand the scale of its operations.

In accordance with the agreement, by the end of this year ownership of FIM's Miyagi Plant and Aizu Plant is scheduled to be transferred to J-Devices, which will then take over the operation of these manufacturing facilities. All employees of the two plants are expected to be transferred to J-Devices. In addition, FIM plans a staged transfer of equipment from its Kyushu Plant to J-Devices facilities also located in Kyushu, and ultimately will transfer all of its manufacturing capability. After the transfer is complete, the manufacturing currently conducted at FIM's Kyushu Plant will take place with the same high standards for quality at J-Devices' facilities. Employees of FIM's Kyushu Plant are scheduled to be transferred to J-Devices or reassigned within the Fujitsu Group.

The products that are currently being made at the assembly and test facilities to be transferred will be produced by J-Devices and will continue to be supplied to customers through Fujitsu Semiconductor with the same high standards for quality, delivery, and service. Based on the mutually beneficial relationship that will be created through this transaction, J-Devices seeks to continue contributing to the further progress of Japan's semiconductor industry.

Tags: Fujitsu, Semiconductor, J-Devices, Business