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Fujitsu, NEC and NTT Docomo go into the network business

Riding the smartphone bandwidth wave
Wed Aug 01 2012, 15:41
A Fujitsu logo

CHIP VENDORS Fujitsu and NEC have teamed up with Japanese telecom firm NTT Docomo to form a joint venture for designing and flogging telecommunications network chips.

Fujitsu and its chip division Fujitsu Semiconductor announced it will set up a joint venture with rival chip vendor NEC and telecom operator NTT Docomo to form Access Network Technology Ltd. The joint venture will work on designing and selling chips used in network equipment.

According to Fujitsu the four firms - Fujitsu counts its semiconductor division as a separate entity - have been collaborating on "communication platform development". The firm's reference to communication platforms is the equipment that usually ends up in exchanges and in some cases the baseband chips found in mobile devices.

In a statement Fujitsu said, "The rapid expansion of the smartphone market and the increase in data traffic volumes have been making communications platforms increasingly important. The technologies individually held by the companies, as well as the results of their joint development work, offer a huge competitive advantage in the smartphone market, which is expected to experience an even greater global expansion."

Access Network Technology will be majority-owned by Fujitsu with the firm having a 52.8 per cent stake, while its semiconductor division will take a further 9.5 per cent stake in the firm. NTT Docomo and NEC will take 19.9 per cent and 17.8 per cent of the 85-employee firm, respectively.

Access Network Technology will start up this month once NTT Docomo, NEC and Fujitsu Semiconductor each put in their shares of the JPY 100m working capital. µ


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