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Fujitsu, NEC, Docomo unveil smartphone chipmaker

02 Aug 2012

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Fujitsu Ltd, NTT Docomo Inc. and NEC Corp. have launched a new company to develop smartphone chips. The venture sets the Japanese companies against Qualcomm, said to be the world's largest mobile chipmaker and leading supplier of core microchips used in smartphones and tablets.

Fujitsu will own 52.8 percent of Access Network Technology Ltd, which it previously planned to set up on its own. NTT Docomo and NEC will acquire 19.9 percent and 17.8 percent, respectively, of the company, while Fujitsu Semiconductor Ltd will own the remaining 9.5 percent, the companies indicated.

The joint venture will develop chips that control wireless communications and signals, while outsourcing production, the companies added.

Access Network Technology will aim to gain seven percent of the global market share for smartphone chips by 2014, Fujitsu said.

The company will also research products for high-speed LTE networks and next generation network technology.

Together with Panasonic, the three companies in Access Network Technology announced a partnership last year with South Korea's Samsung Electronics to manufacture their own cellphone chips.

The deal was called off this April after the companies failed to agree on partnership terms.

Smartphone and tablet makers were hit with supply uncertainty earlier this year after Qualcomm warned in April it would be unable to meet demand for its advanced chips due to a capacity shortfall at contract manufacturer Taiwan Semiconductor Manufacturing Co.

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