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Fujitsu, NTT Docomo, NEC venture into smartphone chipset market

Posted: 03 Aug 2012 ?? ?Print Version ?Bookmark and Share

Keywords:smartphones? mobile chip venture? mobile communications chipset?

Technology giants Fujitsu Limited, NTT Docomo, NEC and Fujitsu Semiconductor have collaborated to launch a new company which aims to develop and sell semiconductor products with built-in modem functions for wireless communications.

The joint venture, dubbed Access Network Technology Limited, will rely on the strengths of each member company in hopes of providing local handset manufacturers with alternatives to foreign-produced mobile chips.

Operations have been scheduled to begin this month after funds were funneled from investors. The joint venture will be led by Minoru Sakata, president of Fujitsu's mobile phone unit, and will employ roughly 85 employees headquartered in Kanagawa Science Park. Capital is pegged at $1.27 million. Fujitsu will acquire 52.8 percent of the venture while NTT Docomo, NEC and Fujitsu Semiconductor will own 19.9 percent, 17.8 percent and 9.5 percent respectively, according to the release.

Access Network Technology is expected to go up against the world's top mobile chip manufacturers like Qualcomm in an attempt to secure around seven percent of the global market share for smartphone chips by 2014. The joint venture will also delve on product research for high-speed LTE and next-generation networks technology.

In a similar deal, three key players of Access Network Ltd announced a partnership with Panasonic and Samsung Electronics last December 2011 for a mobile chip venture. Discussions ended April after the companies failed to agree on partnership terms.

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