(Corrects paragraph 2 to show that Spansion will be using a
Fujitsu plant, not buying it)
TOKYO, April 30 Japan's Fujitsu Ltd is
in late-stage talks to sell its microcontroller chip business to
Spansion Inc -- a deal that will broaden the U.S.
semiconductor company product line-up so it can better cater to
automotive clients, two sources familiar with the matter told
Reuters on Tuesday.
Terms of the deal, which will include Fujitsu's
microcontroller design and development business, could not be
obtained. Production of the chips looks set to continue at a
Fujitsu plant, the sources said.
Microcontrollers, chips used widely in cars, are seen as a
high growth area and Spansion, a joint venture set up in 2003
between Fujitsu and Advanced Micro Devices Inc that
specialises in flash memory, has been trying to diversify its
While semiconductors were once a key business for Fujitsu,
it and other Japanese chipmakers have failed to keep up with
rivals like Samsung Electronics Co Ltd. Fujitsu also
plans to merge its LSI chip business with that of Panasonic Corp
this fiscal year.
A Fujitsu spokesman said nothing had been decided with
regards to its microcontroller chip business. The news was also
reported by Japanese media, including the Nikkei business daily.
Microcontrollers are part of Fujitsu's device solutions
business, which also includes LSI chips. The division logged 585
billion yen ($6 billion) in sales in the year ended March 2012,
accounting for 12 percent of Fujitsu's total revenue.
Japan's Renesas, the world's leading maker of
microcontroller chips, secured a $1.8 billion government-led
bailout last year after slashing jobs and deciding to close
eight out of its 18 domestic plants.
($1 = 98.1500 Japanese yen)
(Reporting by Maki Shiraki; Writing by Mari Saito; Editing by