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Fujitsu Divests Stake in Shinko Electric Chip Packaging
December 14, 2023
Fujitsu, a leading Japanese technology company, has announced its plans to sell its 50% stake in chip packager Shinko Electric Industries for a staggering $2.4 billion. The sale will be made to a consortium led by the state-owned investment fund Japan Investment Corp, according to reports from the Nikkei.
As a result of this transaction, Shinko Electric Industries will become a privately owned company, with Japan Investment Corp holding an 80% share, Dai Nippon Printing with 15%, and Mitsui Chemicals with 5%.
Shinko Electric Industries is currently the fourth-largest packaging company in the world, boasting a global market share of 9.2% and a market capitalization of $5 billion. This sale is seen as a strategic move by Fujitsu to focus on its core IT business and divest non-core businesses.
In recent years, Fujitsu has been streamlining its operations by selling off various business units. In 2018, the company sold its mobile devices and PCs, and last year it divested its scanner division. The intention has been to sell off non-essential assets such as air conditioners, batteries, and now Shinko Electric Industries.
By divesting these non-core businesses, Fujitsu aims to concentrate its resources and expertise on its IT services and solutions. This move aligns with the company's long-term strategy to strengthen its position in the highly competitive IT market.
The sale of its stake in Shinko Electric Industries is expected to provide Fujitsu with a significant cash infusion, which can be used to further invest in its IT business and pursue strategic acquisitions. This will enable the company to enhance its capabilities and offer innovative solutions to its customers.
Overall, this divestment marks a significant step for Fujitsu in its journey towards becoming a more focused and agile technology company. By shedding non-core businesses and reallocating resources, the company is positioning itself for future growth and success in the rapidly evolving IT industry.
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