Fujitsu to sell its semiconductor business

Fujitsu is preparing to sell its semiconductor business in a restructuring, according to a Bloomberg news source. The K supercomputer maker in Tokyo has hired UBS as financial advisor for the sale process. Since the decision was not made public, the person declined to be identified.

Fujitsu's business has been hit by a drop in demand for flat-screen TV chips. Samsung Electronics in South Korea and Apple in the US have pushed Japan's electronics makers, including Sony, Sharp and Panasonic, into the depths of losses. Fujitsu is no exception, and the company is reorganizing its business.

"No decision has been made yet," said Fujitsu spokeswoman Masahiroyamane in Tokyo in a telephone interview. He declined to give further explanation. The UBS representative did not respond to calls and emails seeking comment.

Fujitsu's share price has fallen 24% per cent this year, with the company announcing its first loss of quarterly earnings in July, with losses exceeding analysts ' expectations as a result of the deteriorating European economy and the downturn in the US market affecting its solution business. As of September 21, the company's market value was 629 billion yen (about 8.05 billion U.S. dollars).

In the fiscal quarter ended June 30, Fujitsu's net loss amounted to 23.8 billion yen, and 5 analysts surveyed by Bloomberg had an average forecast of 12.4 billion yen. The company's operating loss or revenue minus sales costs and administrative costs amounted to 25 billion yen, with revenues falling 2.9% to 957.4 billion yen.