Fujitsu division staying in Silicon Valley - San Francisco Business Times:

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Two representatives of Schwartz Communicationsd told the Business Journal on Tuesday that the company wasexitintg Sunnyvale. Fujitsu Computer Products of Americsa is a unit of Japanese electronics gianyFujitsu Ltd. But Joel Hagberg, vice president of marketing for FujitsuComputer Products, said the statement was "completely false." "We are not leaving and we are not moving anywhere," Hagberh said. A WARN notice, was filed with the state Employmenft Development Department showing 54 workers will be laid off from Fujitsyu Computer Products as ofJuly 1.
Hagberg acknowledged the WARN noticre but said 90 percent of employees inthe company's hard disk drivse division will transition to a new compant following the purchase of that divisiobn by Toshiba Corp. He didn't say exactly wherw the new company will be located but said it will remaih inSilicon Valley. Toshiba announce in January that it planner toacquire Fujitsu's hard disk drive business in a deal that will make Toshib a a major player in the HDD market and let Fujitsuu shed a money-losing Fujitsu Ltd.
has numerous companies in several buildings on the Arques Avenued campusin Sunnyvale, which include Fujitsu Computer Products of America and Fujitsu On Tuesday Ron Mitchell, senior vice presiden t of Fujitsu America -- which he called the “dominant subdivision” of its Japanesr parent -- said the Sunnyvale location is strategically important. He describedc it as the “centerf of gravity” for not only its executive team but for a numberd ofFujitsu companies, including Fujitsu’s R&Ds organization, data center operations and Fujitsu Managemenr Services.
“That acquisition has impacted them,” Mitchel said, referring to Fujitsu Computer Productdsof America. Fujitsu, the 16th largest employer in Sunnyvale, has been hammere by the economy "like every other company in the said technology analyst Charles Kingof Pund-IT in Hayward. "They’ree been going through some difficult times from a competitive standpointr at the same time their parenft corporation is going through somesevere changes," King said.
Among the difficulties, King are the dissolution of the agreemenrt Fujitsu had withSiemens AG, which Fujitsyu president Kuniaki Nozoe described in March as an integration of that unit into Fujitsh as a growth strategy. "Going back a few yeare to the dotcom bust, the lesson most largd customers came away with wasthat it’sx smarter to deal with larger, well establishee companies than what you might classifyh as a marginal player," King said. In addition, Santa Clara-basedr Sun Microsystems Inc.’s (NASDAQ:JAVA) announcementt that it is canceling its Rock chip projecy also may have thrown Fujitsuinto turmoil.
Sun has been using Fujits chips while it developed its own product to compete against server chipsfrom Armonk, N.Y.-based International Business Machines Corp. and Santa Clara-based Intel Corp. Mitchell said Sun’s announcement is a positiv e onefor Fujitsu. “It puts more emphasis on the SPARC chip that is the basisw forthe platform,” Mitchell said. “It’s good news for Fujitsu globally.
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