Fujitsu has announced its intention to sell its semiconductor package substrate subsidiary, Shinko Electric, to JIC and other entities.
🟦 Fujitsu Sells Shinko to JIC to Utilize Advanced Technology in Semiconductor Package Substrates
Fujitsu has declared its intention to sell its semiconductor package substrate subsidiary, Shinko Electric, to JIC and other entities. JIC, with a focus on semiconductor-related investments, will provide support for Shinko’s advanced technologies. The anticipated total acquisition amount is approximately 685 billion yen, and the company’s goal is to secure all shares of Shinko Electric through TOB and other methods, ultimately delisting the company.
🟦 Separation of non-core businesses
Fujitsu had been implementing a strategy to separate the manufacturing industry from the Group, with Shinko Electric identified as a non-core business. The proceeds from the sale will be channeled into the IT service business. Simultaneously, JIC has opted to acquire JSR, a semiconductor materials company, as part of its efforts to bolster the semiconductor supply chain.
Shinko Electric excels in high-performance semiconductors like flip-chip packages and is strategically targeting the market for advanced package substrates such as 5G, AI, and IoT. In the fiscal years 2022 to 2025, Shinko Electric plans to invest 140 billion yen in the production system for flip-chip packages, with the objective of achieving mass production of next-generation flip-chip packages.
🟦Summary
Fujitsu has declared its intention to sell its semiconductor package substrate subsidiary, Shinko Electric, which was classified as a non-core business, to JIC and other entities. The anticipated total acquisition amount is approximately 685 billion yen, and it is anticipated that Shinko Electric will be delisted.
Shinko Electric is a profitable company, but Fujitsu has sold it. I think the fact that it was not bought by foreign companies is good news for the semiconductor industry in Japan.
