Feeds

Fujitsu says SAYONARA to smartphone chip JV

Splits with NEC, NTT on attempt to take on Qualcomm

Intelligent flash storage arrays

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. ®

Security for virtualized datacentres

More from The Register

next story
TEEN RAMPAGE: Kids in iPhone 6 'Will it bend' YouTube 'prank'
iPhones bent in Norwich? As if the place wasn't weird enough
Crouching tiger, FAST ASLEEP dragon: Smugglers can't shift iPhone 6s
China's grey market reports 'sluggish' sales of Apple mobe
Sea-Me-We 5 construction starts
New sub cable to go live 2016
EE coughs to BROKEN data usage metrics BLUNDER that short-changes customers
Carrier apologises for 'inflated' measurements cockup
Comcast: Help, help, FCC. Netflix and pals are EXTORTIONISTS
The others guys are being mean so therefore ... monopoly all good, yeah?
Surprise: if you work from home you need the Internet
Buffer-rage sends Aussies out to experience road rage
EE buys 58 Phones 4u stores for £2.5m after picking over carcass
Operator says it will safeguard 359 jobs, plans lick of paint
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.