Feeds

Fujitsu says SAYONARA to smartphone chip JV

Splits with NEC, NTT on attempt to take on Qualcomm

The essential guide to IT transformation

Fujitsu has decided to end its aspirations to be a smartphone semiconductor player after dissolving a joint venture with NEC and NTT just 18 months after its launch.

Access Network Technology Limited was established by Fujitsu in August 2012, with the firm taking a majority 52.8 per cent stake.

Its Fujitsu Semiconductor business held 9.5 per cent, while mobile operator NTT Docomo took 19.9 per cent and ailing NEC 17.8 per cent.

In a brief statement sent to The Reg from Fujitsu’s Tokyo HQ, the firm briefly “explained” the reason for its decision:

In the face of fierce competition in the global smartphone market, the company wasn’t able to obtain a large enough market share.

It’s unclear exactly what happened in the past 18 months that significantly stacked the market against the JV. Even back then it faced an uphill struggle against the likes of Qualcomm, which shipped around half of the world’s smartphone chips.

The idea was that the firm would build “semiconductor products with built-in modem functions” for use in Fujitsu, Docomo and NEC phones but also to sell to third parties.

It’s possible that demand for either channel did not pan out as expected.

It can’t have helped matters that NEC announced at the end of July last year it would be closing its ailing smartphone business.

The once-proud tech giant said it would continue to manufacture and sell existing models but will focus on “conventional mobile phone handsets” and tablets in the future.

Two firms which will breathing a sigh of relief today are Samsung and Panasonic. Both were in talks with Fujitsu, NEC and NTT over a possible JV to build LTE chips, prior to the formation of Access Network Technology. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
EE fails to apologise for HUGE T-Mobile outage that hit Brits on Friday
Customer: 'Please change your name to occasionally somewhere'
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.