Fujitsu and Panasonic today announced plans to merge their LSI businesses. Specifically, the two plan to consolidate the design and R&D of their LSI businesses. The deal will see the two form a new, fabless company for LSI design and development. They're asking Development Bank of Japan Inc. (DBJ) to assist with investment and financing.
Fujitsu and Panasonic say the decision is a result of deteriorating market conditions and a rise in prominence of overseas semiconductor manufacturers. The companies said in a joint statement that bringing together their respective technologies and customer bases is "vital to build a competitive business globally."
Fujitsu and Panasonic are currently hashing out the details of a contract but have said that the new company will act as an independent entity. No details were given on third party investors, nor did the two companies delve deeper into the matter of financing this new venture.