Fujitsu to outsource chip production to TSMC

Fujitsu, which makes system chips used in products ranging from digital cameras to supercomputers, has been looking for a buyer or partners for its chip operations, and the announcement of talks with TSMC has prompted speculation over the fate of Toshiba Corp.'s chip business.

Some analysts had expected Fujitsu and Toshiba might join hands after NEC Electronics, seen as a potential partner for both companies, said it had started merger talks with Renesas Technology.