Standalone microelectronics business to be formed on 21 March

Fujitsu plans to spin off its semiconductor business into a new wholly owned subsidiary called Fujitsu Microelectronics Ltd.

The subsidiary will come into existence on 21 March, with an estimated market capital of 60bn yen (£287m) and a staff of 13,500 people.

Fujitsu’s chips are used in a wide range of computing equipment including servers and digital cameras. Fierce competition from rival chip makers such as Toshiba has caused a slide in Fujitsu’s semiconductor revenue in recent years, though the subsidiary is confident it can return to profitability.

Fujitsu shares surged 8.2 per cent on the Tokyo Stock Exchange after the announcement, their biggest rise since April 2004.