Fujitsu General Ltd. will sell the power modules division of its subsidiary, Fujitsu General Electronics Ltd. (FGEL), to L&T Semiconductor Technologies Ltd. for approximately ¥2 billion (around $12.8 million), as per news reports. The transfer includes the business itself and the related production facilities. While L&T Semiconductor will acquire the business unit, the production facilities will go to Kaynes Semicon Private Ltd., a contract manufacturer associated with L&T.
The board of directors approved the deal on June 9, 2025. The asset purchase agreement was signed on the same day. The transaction is expected to be completed on June 23, 2025, subject to regulatory clearance under Japan’s Foreign Exchange and Foreign Trade Act. Fujitsu General has also confirmed that it expects to record an extraordinary gain of about ¥2 billion in the first quarter of the fiscal year ending March 2026.
Fujitsu General stated the sale is part of a broader transformation of its electronic device business. The company is realigning its portfolio under the Tech Solution Business to focus on strengthening its overall business foundation.
There are no existing capital, personnel, or business relationships between Fujitsu General and either L&T Semiconductor or Kaynes Semicon. They are not classified as related parties.
Read more: L&T Technology Services Secures €50 Million Deal with European Automotive OEM!
FGEL, based in Iwate, Japan, develops and manufactures electronic devices and communications equipment.
L&T Semiconductor Technologies, established in November 2023, is a 100% subsidiary of Larsen & Toubro Ltd. It focuses on semiconductor development and manufacturing. The company is based in Bengaluru, India.
Kaynes Semicon Private Ltd., based in Mysore, is a subsidiary of Kaynes Technology India Ltd. It was incorporated in 1988 and handles electronic device production on a contract basis.
As of 10:01 AM on June 10, 2025, L&T Technology Services share price was at ₹4,407.70, up 1.62%, but down 17.90% over the past 6 months and 8.16% over the past year.
The transfer is part of Fujitsu General’s internal restructuring and is expected to be completed by June 23, 2025, pending required regulatory approvals.
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Published on: Jun 10, 2025, 11:27 AM IST
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