Fujitsu Ltd. and Sumitomo Electric Industries Ltd. will merge their compound semiconductor operations this spring in response to growing demand for chips used in digital products and communications devices, Fujitsu officials said Thursday.
The two firms will create an equally owned venture in April by merging a Fujitsu subsidiary now producing compound semiconductors with the Sumitomo Electric department working in the same area, the officials said.
The firm will be capitalized at about 20 billion yen and have around 1,000 employees.