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Global IC business: Challenges and strategies

Posted: 05 Jan 2012 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor manufacturing? IC industry? FRAM?

In that regard, about 200 local engineers are working on product development in our centers in Chengdu and Shanghai in China. We believe the Chinese market in and of itself has great potential. Additionally, we see the possibility of working with our Chinese customers to develop other emerging markets.

In another example, Fujitsu Semiconductor tapped into the Indian market earlier than most competitors. We opened our second sales office in Delhi in 2010.

The value chain of the business directed toward emerging countries does not remain only within those areas but spreads around the world. This value chain includes product planning and design-to-product utilization by and among end users. Fujitsu Semiconductor's locally based activities in Asia, Americas and EMEA are tightly and efficiently linked on a global basis to reflect the business requirements of emerging countries.

Total solutions
Another important factor for emerging markets is the need to prepare a "total solution," covering the entire system including hardware and software. Many emerging Chinese companies require turnkey solutions, which enable them to quickly develop their own systems.

For example, the new Fujitsu FM3 family of 32bit RISC microcontrollers, based on the ARM Cortex-M3 processor core, incorporates advanced software, IP, and a variety of peripherals. This is the type of integrated solution that emerging markets value.

It also is important that the solution be targeted to the particular market. Our Japanese-system products, which typically have the highest functionality and performance, are often not appropriate for an emerging market. To respond to a variety of local requirements, we prepare highly flexible system platforms that can be tailored to fit the needs of the market.

For example, high-value ASICs meet the high performance and low power needs for a variety of target applications ranging from consumer products such as digital still cameras to high-end systems such as servers and high-speed networking equipment.

Across both emerging and mature economics, data security has never been more important. Our Ferroelectric RAM (FRAM) meets today's data-security requirements. This non-volatile memory provides advantages such as high-speed writing, high endurance, low-power consumption and tamper resistance. These capabilities are highly valued for data security in many applications in the medical, metering, and industrial sectors.

Green products
Environmental factors are another important consideration for both emerging and established markets. We are seeing more interest in the concepts of a low-carbon-energy society and "smart" cities. Fujitsu is increasingly being recognized by the industry for its environmental initiatives, and we are intensifying our commitment to provide "eco-friendly" devices. In addition to being appropriate on a global scale, we see this commitment as a competitive differentiator, one we believe will become more important in the years ahead.

So while the economic environment is challenging today, with challenges come opportunities. In emerging markets our local design teams are developing the low-cost, turnkey solutions needed. At the same time, we maintain our commitment to providing high-quality, reliable products that are environmentally friendly. By so doing, we expect to remain a sustainably profitable enterprise even within the present business environment.

- Shinichi Machida
??Corporate Vice President
??Fujitsu Semiconductor Ltd

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