Fujitsu Ltd. said it will spin off its semiconductor operations next month.

The new company, called Fujitsu Microelectronics, will probably generate at least ¥600 billion in annual sales by fiscal 2010, the Tokyo-based company said Tuesday.

The new unit, which makes system LSI chips, will be formed March 21. It will be called Fujitsu Microelectronics Ltd., Fujitsu said.

It is expected to post an operating margin of 5 percent in the 12 months ending March 2010 and generate sales of at least ¥600 billion the following year, Fujitsu said.

Vice President Toshihiko Ono will be president of the new company, the statement said.