JCNNetwork: Fujitsu Ltd., Japan’s biggest computer-services provider, forecast it will return to profit this fiscal year on narrowing losses in its chip business.
President Kuniaki Nozoe is selling the company’s money-losing hard-disk-drive business to Toshiba Corp for about 30 billion yen (US$303.9 million) to focus on chip and software operations.
Fujitsu also plans to outsource production of system LSI chips measuring 40 nanometers to Taiwan Semiconductor Manufacturing Co. to cut spending and help return the chip unit to profit next year.
Net income will probably be 20 billion yen (US$202 million) in the 12 months ending March 31, 2010, from a deficit of 112.4 billion yen (US$1.1 billion) a year earlier, losses at the semiconductor unit will narrow to 15 billion yen (US$152 million) in the period from 60 billion yen (US$607.8 million). Fujitsu is also considering joint development of 28-nanometer devices with the Hsinchu, a Taiwan-based company.