September 10, 2018
Fujitsu Semiconductor Limited
Kaga Electronics Co., Ltd.

Kaga Electronics acquires 70% shares in Fujitsu Electronics from Fujitsu
Semiconductor
Kaga Electronics Co., Ltd. (TSE:8154 “Kaga Electronics”) and Fujitsu Semiconductor Limited (“FSL”)
today announced that they have entered into a definitive agreement whereby Kaga Electronics acquires
70% shares in Fujitsu Electronics Inc. (“FEI” ) from FSL.
Kaga Electronics plans to also acquire the remaining 30% shares held by FSL by the end of 2021. The
transfer of 70% shares, which takes place in Phase 1 is expected to close in January 2019, subject toapproval of relevant regulatory authorities and other customary closing conditions.
The business environment surrounding the electronics trading industry, where many players arecompeting each other, has been changing more dramatically in recent years on the back of accelerated
consolidation and integration of suppliers including semiconductor/device manufacturers. We believethat the competition between electronics trading companies will intensify further in the future as theirpolicy changes concerning distribution agents, a growing trend that customers shift their assembly offinished products overseas, changes in demand and supply and also in prices in both domestic andoverseas markets, and shortening product lifecycles as a result of ongoing technological innovations.
Under these circumstances, we have reached the conclusion that the optimal solution to maximize thevalue for all stakeholders, including customers and partners, is to integrate the businesses of Kaga
Electronics and FEI. In its “Medium-term Management Plan 2018” (released on November 4, 2015), Kaga
Electronics has attached utmost importance to “establishment of profit-oriented management,” and thus
has focused on increasing sales of electronic devices to existing major customers and expanding the EMS
business (contracted manufacturing of electrical substrates) primarily in overseas markets. The
acquisition of FEI’s shares this time is part of the efforts to fulfill its growth strategies embodied in its
Medium-term Management Plan. FEI has aimed to expand its global reach with the reinforcement on
broadening of the product line-up as well as further development of existing business. FEI can further
intensify the growth strategy following this transaction. We expect to create the synergies as follows:① Market share expansion for the Electronic Parts and Semiconductor business
Seek to enhance the capability to address clients’ needs and expand shares in the electronic parts andsemiconductor markets by complementing distribution channels domestically and internationally.
② Expansion in scale of the EMS business
Achieve discontinuous growth of the high-value added EMS business, which Kaga Electronic is
specialized in, by adding FEI’s broad customer base, one of its competitive advantages, to the existing
global network of EMS business bases.
③ Further improvement in management efficiency through collaboration of businesses of the twocompanies
Seek to improve the profitability of both Kaga Electronics and FEI by optimizing and sharing, to thegreatest extent possible, their sales related organizations and other functions.
- 1 -For the present, FEI will retain its trade name “Fujitsu Electronics Inc.” and continue to deliver its
existing offerings.
Message from President and Representative Director of Kaga Electronics Ryoichi Kado
Kaga Electronics has been expanding the scope of its operations by responding to a variety of customer
needs under its corporate philosophy of “Everything we do is for our customers.” As an independent
general trading company with a specialization in electronics, Kaga Electronics is engaged in a wide
variety of business activities and offers a variety of services to customer both in Japan and abroad,
ranging from the Electronic Parts and Semiconductor business where it distributes electronic parts andsemiconductors by leveraging its expertise in the segment, the EMS business where it has a competitive
advantage in high-mix low-volume production, to the Information Equipment business and New
business where it supports to customers in planning, development and design of their products, creationof software/video images, provision of network solutions and other system support services. By
welcoming FEI into our group, Kaga Electronics evolves into a corporate group with total net sales ofabout 500 billion yen and can solidify its management foundation towards the goal of becoming the“industry leader in Japan,” as set out in its Medium-term Management Plan. Also, by leveraging this solidmanagement foundation and through continued efforts to expand the group’s scale and improve its
management quality, we seek to achieve sustainable growth as a world-class company which can standup to overseas competitors with their sales crossing the trillion yen mark.
Message from President and Representative Director of FSL Kagemasa Magaribuchi
FEI has continued to deliver a wide variety of offerings, including total solutions, tailored to a variety ofcustomer needs by leveraging its long nurtured ability to make proposals concerning electronic devices
and based on trusted relationships with customers and partners. In fact, FEI has the teams of engineersthat can develop, design and mass-produce products in-house and has collaborated with a number ofbusiness partners around the world to deliver a variety of solutions (including cutting-edge solutions
unique to Fujitsu). We believe we can provide higher values, such as enhanced quality, to our existing andnew customers and partners by combining FEI’s strengths and the synergies expected from theintegration with Kaga Electronics. Furthermore, considering the fact that FEI has been distributing avariety of Fujitsu’s products and services, Fujitsu will continue to collaborate with FEI. We expected thatthe combination will generate new business opportunities for IoT, automotive and AI, in addition to theexisting business with Fujitsu with a more comprehensive customer base and a robust product portfolio.
As a member of Kaga Electronics Group, we strongly believe that FEI will be able to deliver accelerated
growth.

- 2 -For more information:
Fujitsu Semiconductor: http://www.fujitsu.com/jp/group/fsl/en/
Fujitsu Electronics: http://www.fujitsu.com/jp/group/fei/en/
Kaga Electronics: https://www.taxan.co.jp/en/

Press Contacts
Fujitsu Semiconductor Limited
Public Relations
https://www.fujitsu.com/jp/group/fsl/en/contact/press-inquiry-en.html
Kaga Electronics Co., Ltd.
Investor Relations & Public Relations OfficeE-mail: webmaster@taxan.co.jp
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