Fujitsu sells power module business to L&T semiconductor for $13.8 mn

Fujitsu General Ltd has announced the sale of the power modules division of its consolidated subsidiary, Fujitsu General Electronics Ltd (FGEL), to India’s L&T Semiconductor Technologies Ltd (LTSCT) for about ¥2 billion, or $13.8 million.

The deal, approved by the company’s board on 9 June, is expected to be completed by 23 June, pending regulatory clearances under Japan’s Foreign Exchange and Foreign Trade Act.

The Japanese company said the divestment is part of a broader transformation of its electronic device portfolio aimed at reinforcing group-wide business fundamentals.

“This transfer is aligned with our strategy to optimize our business portfolio and focus on core growth areas,” Koji Masuda, president and chief executive of Fujitsu General, said in an official statement.

FGEL, based in Iwate, Japan, manufactures electronic devices and information and communication equipment under Fujitsu’s Tech Solution Business.

As part of the transaction, production facilities related to the business will be transferred to Kaynes Semicon Pvt. Ltd, a Mysuru-based manufacturing contractor affiliated with Kaynes Technology India Ltd.

Fujitsu General expects to record an extraordinary gain of around ¥2 billion in the first quarter of its fiscal ending March 2026 following the transaction.

Founded in November 2023, Bengaluru-headquartered L&T Semiconductor Technologies is a wholly owned subsidiary of engineering firm Larsen & Toubro Ltd.

The company focuses on the development and manufacture of semiconductor products and is seen as a key player in India’s growing chip ecosystem.

Kaynes Semicon, incorporated in 1988, will handle contract manufacturing for the acquired business.

Fujitsu General said no capital, personnel, or business ties exist between itself and the Indian entities involved in the transaction.

The move comes amid India’s push to become a global semiconductor hub, and aligns with the broader trend of supply chain diversification away from China.