Fujitsu Terminates Business Alliance with TDK
Fujitsu Limited today announced that it has come to an agreement with TDK Corporation ("TDK") to terminate their strategic business alliance in regard to hard disk drive ("HDD") heads, and in conjunction, the companies will dissolve their joint-venture agreement regarding HDD head manufacturer TDK FUJITSU Philippines Corporation ("TFPC"; 66% owned by TDK and 34% owned by Fujitsu).
1. Reason for Terminating the Business Alliance
In October 2004, Fujitsu and TDK signed a business alliance agreement on the HDD head business. In order to build a structure for technological cooperation, the two companies established the joint-venture TFPC in December 2004 to process and assemble HDD heads. Recently, however, Fujitsu decided to exit the HDD head and HDD businesses, and therefore the two companies have agreed to terminate the business alliance and dissolve the joint-venture agreement.
2. Details Regarding Termination of Business Alliance
The TFPC joint-venture agreement will be dissolved, and the company will become a wholly owned subsidiary of TDK.
Overview of the Joint Venture
1) Company name: TDK FUJITSU Philippines Corporation
2) Major lines of business: Manufacture of hard disk drive heads (processing and assembly)
3) Date established: December 1, 2004
4) Registered address: 119 East Science Avenue, Special Export Processing Zone,
Laguna Technopark, Binan, Laguna, Philippines
5) Capitalization: US$65 million
6) Employees: 2,236 (as of March 24, 2009)
3. Overview of Counterparty to Business Alliance Termination
1) Company name: TDK Corporation
2) Registered address: 1-13-1 Nihonbashi, Chuo-ku, Tokyo, Japan
3) Representative: Takehiro Kamigama
4) Date established: December 1935
5) Capitalization: 32,641 million yen (as of the end of December 2008)
6) End of fiscal year: March
7) Employees: 74,071 (as of the end of December 2008)
8) Major lines of business: Manufacture and sale of electronic materials and components
9) Annual sales: 866,285 million yen (consolidated basis; fiscal year ending March 2008)
10) Relationship with Fujitsu: Apart from relationship described above, there is no capital or personnel relationship
4. Schedule for Termination of Business Alliance
Scheduled for May 11, 2009.
5. Impact on Financial Results
This matter will have an insignificant impact on Fujitsu's financial results.