Siemens, Fujitsu PC Venture

Electronic News, June 21, 1999

Fujitsu Limited and Siemens AG signed a Memorandum of Understanding to expand their joint activities in the worldwide computer market. As part of this, the two companies will merge most of their European computer operations and establish a joint venture company, Fujitsu Siemens Computers, to develop, manufacture and market a full range of information products.

A broad development and mutual supply arrangement is part of the deal. The two companies want to capture a top three industry position within the combined worldwide markets for PCs, Intel- based and UNIX servers, and large scale enterprise systems. The combination is also an attempt to challenge Compaq Computer as top PC vendor in Europe. Europe is one of the strongest pockets of growth in the PC market with a more than 20 percent growth rate. Meanwhile, competition in the worldwide PC industry continues to heat up as pricing plummets and high volume and mass become the name of the game.