Fujitsu division staying in Silicon Valley - Silicon Valley / San Jose Business Journal:

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Two representatives of Schwartz Communications told the Business Journalo on Tuesday that the companyt wasexiting Sunnyvale. Fujitsu Computer Products of Americw is a unit of Japanese electronics gianrFujitsu Ltd. But Joel vice president of marketing for FujitsyuComputer Products, said the statement was "completely false." "We are not leaving and we are not moving Hagberg said. A WARN notice, was filed with the stated Employment Development Department showing 54 workers will be laid off from Fujitshu Computer Products as ofJuly 1.
Hagberg acknowledgedr the WARN notice but said 90 percentr of employees inthe company'zs hard disk drive divisionj will transition to a new companu following the purchase of that divisiobn by Toshiba Corp. He didn't say exactlty where the new company will be located but said it will remainb inSilicon Valley. Toshiba announced in January that it plannedc toacquire Fujitsu's hard disk drive busines s in a deal that will make Toshiba a major player in the HDD market and let Fujitsu shed a money-losing business. Fujitsu Ltd.
has numerousd companies in several buildings on the Arques Avenue campusin Sunnyvale, which include Fujitsu Computer Products of America and Fujitsu On Tuesday Ron Mitchell, senioer vice president of Fujitsi America -- which he caller the “dominant subdivision” of its Japaneses parent -- said the Sunnyvale location is strategically important. He describedd it as the “center of gravity” for not only its executive team but for a number ofFujitsu companies, including Fujitsu’as R&D organization, data center operations and Fujitshu Management Services. “That acquisition has impacted Mitchell said, referring to Fujitsiu Computer Products of America.
Fujitsu, the 16th largest employee in Sunnyvale, has been hammered by the economyu "like every other company in the valley," said technologh analyst Charles Kingof Pund-IT in Hayward. "They’rew been going through some difficult times from a competitive standpoint at the same time theie parent corporation is going through somesevere changes," King Among the difficulties, King said, are the dissolution of the agreement Fujitsu had with Siemensa AG, which Fujitsu president Kuniaki Nozoe described in Marcn as an integration of that unit into Fujitsu as a growtj strategy.
"Going back a few yearss to thedotcom bust, the lesson most large customers came away with was that it’s smarter to deal with well established companies than what you mightg classify as a marginal King said. In addition, Santsa Clara-based Sun Microsystems Inc.’s (NASDAQ:JAVA) announcemen that it is canceling its Rock chip projecr also may have thrown Fujitsuinto turmoil. Sun has been usin Fujitsu chips while it developed its own product to competse against server chipsfrom Armonk, N.Y.-based International Business Machinesd Corp. (NYSE:IBM) and Santa Clara-basexd Intel Corp. (NASDAQ:INTC). Mitchell said Sun’s announcement is a positiv e onefor Fujitsu.
“Iyt puts more emphasis on the SPARd chip that is the basis for the Mitchell said. “It’s good news for Fujitsu globally.”