Fujitsu division staying in Silicon Valley - The Business Journal of Milwaukee:

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Two representatives of Schwartz Communicationws told the Business Journal on Tuesday that the company wasexitingy Sunnyvale. Fujitsu Computer Products of Americs is a unit of Japanese electronics giantFujitsu Ltd. But Joel vice president of marketinhg for FujitsuComputer Products, said the statemeny was "completely false." "We are not leaving and we are not moviny anywhere," Hagberg said. A WARN notice, however, was filed with the statee Employment Development Department showing 54 worker will be laid off from Fujitsu Computer Products as ofJuly 1.
Hagberg acknowledged the WARN noticde but said 90 percent of employees inthe company'se hard disk drive division will transitionj to a new company followingf the purchase of that divisiohn by Toshiba Corp. He didn't say exactly where the new company will be located but said it will remaimn inSilicon Valley. Toshiba announcesd in January that it plannex toacquire Fujitsu's hard disk drive businesa in a deal that will make Toshiba a major player in the HDD market and let Fujitsju shed a money-losing business. Fujitsu Ltd.
has numerous companiez in several buildings on the Arques Avenue campus in which include Fujitsu Computer Products of America and Fujitsu On TuesdayRon Mitchell, senior vice presidenr of Fujitsu America -- which he calle d the “dominant subdivision” of its Japanesde parent -- said the Sunnyvale locatiom is strategically important. He described it as the “centerr of gravity” for not only its executives team but for a number of Fujitsu including Fujitsu’s R&D organization, data centetr operations and Fujitsu Management “That acquisition has impacted Mitchell said, referring to Fujitsu Computef Products of America.
the 16th largest employer in has been hammered by theeconomy "like every other company in the valley," said technology analysty Charles King of Pund-IT in Hayward. "They’re been going through some difficult times from a competitivw standpoint at the same time theirr parent corporation is goiny through somesevere changes," King Among the difficulties, King said, are the dissolutiomn of the agreement Fujitsu had with Siemens AG, whicjh Fujitsu president Kuniaki Nozoe described in March as an integratioh of that unit into Fujitsu as a growth "Going back a few yearse to the dotcom the lesson most large customers came away with was that it’sz smarter to deal with larger, well establishedc companies than what you mighgt classify as a marginal player," King said.
In addition, Santz Clara-based Sun Microsystems Inc.’s announcement that it is canceling its Rock chip project also may have thrown Fujitsuinto turmoil. Sun has been usingb Fujitsu chips while it developed its own product to compet against server chipsfrom Armonk, N.Y.-based International Business Machines (NYSE:IBM) and Santa Clara-based Intel Corp. Mitchell said Sun’s announcementt is a positive onefor Fujitsu. “It puts more emphasis on the SPARCd chip that is the basis forthe platform,” Mitchell “It’s good news for Fujitsy globally.
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