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0
30
60
150
120
90
120.9
39.4
31.9
42.8
2008 2009 2010 2011
–80
0
15
30
19.2
2.2
20.9
3.3
–9.0
–1.5
–75.8
–11.7
2008 2009 2010 2011
10
5
0
–15
0
200
400
1,000
800
600
354.9
880.1
530.8
288.5
630.6
343.7
271.4
589.0
320.0
247.9
650.1
406.6
2008 2009 2010 2011
GRAPH 5
GRAPH 4
GRAPH 3
Fiscal 2010 Business Results
Sales from the Device Solutions segment
were ¥630.6 billion, up 7.0% year on year.
In Japan, sales climbed 8.9%.
Sales of LSI devices increased due to mass
production of CPUs for Japan’s next-
generation supercomputer system, as
well as the recovery in demand for mobile
phones and automotive devices. The
acquisition of a nickel-hydride battery
business by FDK Corporation also contrib-
uted to higher sales of electronic compo-
nents. Sales outside Japan increased
4.7%. Sales of LSI devices in Asia, Europe
and the US increased. Despite the transfer
of the communications devices business
to Taiyo Yuden Co. Ltd. in fiscal 2009,
there was an increase in sales of semicon-
ductor packages associated with the
expansion of the PC and other markets,
primarily in the US. The acquisition of the
nickel-hydride battery business also had a
beneficial impact.
Operating income was ¥20.9 billion,
an improvement of ¥30.0 billion over the
previous fiscal year. In Japan,
the LSI devices business was profitable
through every quarter. Despite being
negatively affected by earthquake-related
production stoppages, overall income
improved as a result of lower fixed over-
head costs enabled by realigning produc-
tion facilities and enhancing efficiencies
in administrative operations in fiscal
2009, as well as by the maintenance of a
high capacity utilization rate at factories in
Japan up until the earthquake. Income in
the electronic components business also
increased as a result of higher sales and
the promotion of cost reductions. Outside
Japan, increased sales and cost reductions
in the LSI and electronic components
businesses outweighed the negative
effects of exchange rate fluctuations and
resulted in higher income.
gGRAPH 3
gGRAPH 4
Initiatives Going Forward
We are promoting the global expansion
of the LSI business with a focus on newly
emerging economies. The Chinese
market offers particularly attractive
growth opportunities. At our Chinese
operations, we are building a structure
with functions to deliver new products,
from product planning and development
to marketing and customer support. We
plan to expand our Chinese operations
primarily through the hiring of local
engineers, and while bolstering our
ability to offer solutions tailored to the
Chinese market, we will use China as a
base to promote products to other
emerging countries.
Fujitsu is pursuing customer-centric
product development. In the microcon-
troller business, we have adopted the
market-standard processor core ARM
Cortex™-M3 from ARM of Britain for our
FM3 Family products, making them
attractive for consumer, security, medical,
and energy-related electronics. In this
way, we are proactively responding to
customer needs, particularly in markets
outside Japan, and we plan to widen our
lineup of energy-efficient products. Fujitsu
will continue to offer a broad lineup of
products to meet customers’ diverse
needs, including products leveraging our
wealth of proprietary core know-how.
From 2013, we plan to begin full-
scale mass production of gallium-nitride
(GaN) power devices, which promise
exceptional energy efficiency. GaN
devices reduce energy loss to one-third
the level of conventional silicon-based
technology, offering the potential for
significant power savings among a wide
range of electronics.
We have outsourced the manufacture
of 40nm and above semiconductors to
Taiwan Semiconductor Manufacturing
Company (TSMC) as part of our fab-lite
business model. We are collaborating
with TSMC on the development of 28nm
processing technology in order to achieve
the early launch of next-generation
semiconductor products.
Operational Review
and Initiatives
(Billions of yen)
(Billions of yen) (%)
(Billions of yen)
Capital Expenditure
Operating Income (Loss)/
Operating Income Margin
Sub-segment Sales*
(Years ended March 31)
(Years ended March 31)
(Years ended March 31)
n฀n Operating income (Loss) (left scale)
Operating income margin (right scale)
n฀n LSI Devices
n฀n Electronic Components, Others
* Including intersegment sales
047FUJITSU LIMITED ANNUAL REPORT 2011
PERFORMANCE
OPERATIONAL REVIEW AND OUTLOOK
DEVICE SOLUTIONS