Feeds

Hitachi calls time on chip production

Another one bites the dust...

Boost IT visibility and business value

Japanese electronics giant Hitachi has decided to stop in-house production of processors by 2014 as part of efforts to boost its competitiveness on the world stage.

The Tokyo-headquartered conglomerate, which produces everything from nuclear and wind power plants to dump trucks and fridges, said the Micro Device Division of its Information & Telecommunication Systems business would make its last chip on 31 March 2014.

After that date the division will restrict its chip-based activities to the “development, design and quality assurance” of processors for Hitachi Group products, with staff and other resources redistributed throughout the group, the firm said in a statement.

Hitachi explained that its decision had been informed by a changing semiconductor industry which has “seen an increasingly horizontal division of labour in terms of development, design and manufacturing in recent years”.

The firm added that it has already outsourced production of other products in order to cut manufacturing costs and improve efficiencies.

Hitachi first began its involvement with semiconductors back in 1975 when it opened a Device Development Centre, now part of the Micro Devices Division, but its decision on Friday can be seen in the context of a country whose best chip-making days appear to be behind it.

Firms such as Toshiba, Renesas and Fujitsu were hit hard by a global slowdown in the second quarter, and analysts have warned that the slide will continue if they don’t upgrade factories to meet the growing demand for sub-28nm production.

Toshiba last year signalled the closure of half of its plants in Japan while Renesas is restructuring after a ¥200bn (£1.6bn) bailout in October.

There was no news on where Hitachi will outsource its chip production. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.