According to VP Toshihiko Ono, capital expenditure in the chip unit is expected to total approximately JPY 90bn ($850m) in the next fiscal year, up from the JPY 50bn ($472.5m) Fujitsu spent in the financial year ending March.

Fujitsu is Japan’s fourth largest electronics conglomerate and is Japan’s seventh-largest chipmaker. The company said that its decision a few years ago to concentrate on system chips, meant it was rational decision to offload the LCD business and concentrate its resources in this area.

Fujitsu is said to be constructing a leading edge chip plant in western Japan that will build advanced 300-millimeter silicon wafers. The plant costs JPY 160bn ($1.5bn) is slated to become operational in April, with shipments starting in September.