Fujitsu to withdraw from Japan semiconductor production

Kyodo

Fujitsu Ltd. said Friday it will withdraw from semiconductor chip assembly and testing in Japan amid deterioration of its chip business due to the yen’s appreciation and slack demand.

The company will close its Kyushu plant in Kagoshima Prefecture, and sell its Miyagi plant in Miyagi Prefecture and its Aizu plant in Fukushima Prefecture to J-Devices Corp., which makes semiconductors under contract.

Fujitsu Integrated Microtechnology Ltd., which has operated the three plants with 1,900 workers, will be liquidated, while J-Devices will expand production to improve its competitiveness.

Employees at the two plants subject to the sale in December will be transferred to J-Devices. The Kyushu plant workers will move to J-Devices or Fujitsu group firms.