Denso Buys Fujitsu Chip Plant in Japan

Denso Corp. says it has agreed to buy a microchip plant in Iwate, Japan, from Fujitsu Semiconductor Ltd. Terms were not disclosed, but the deal is expected to be completed by October.

The Fujitsu plant currently makes a mix of consumer electronics chips and automotive microcontrollers. Denso says the factory will continue to make consumer chips for Fujitsu customers. But The Nikkei reports that Denso intends to phase out those products and make only vehicle controllers there about three years from now.

The company operates two other plants in Japan that make controller. It says buying Fujitsu's plant was less expensive than building its own factory. Denso plans to retain the plant's 530 workers.