Transferring the power module business to India’s L&T subsidiary, where Kaynes will serve as its manufacturer, Japan’s Fujitsu closes ¥2 billion deal, reshaping cross-border industry playbooks.
Fujitsu General Electronics Limited, a leading Japanese electronics manufacturer, has agreed to transfer its power modules business to India-based L&T Semiconductor Technologies Ltd (LTSCT) in a deal valued at approximately ¥2 billion (about ₹1.18 billion).
The transaction was approved by Fujitsu’s board on Monday and is expected to conclude by 23 June, subject to regulatory clearance under Japan’s Foreign Exchange and Foreign Trade Act.
As part of the agreement, Kaynes Semicon Private Ltd—a wholly owned subsidiary of India’s Kaynes Technology India Ltd—will acquire the associated manufacturing assets. Kaynes Semicon will serve as a contract manufacturer, producing power modules for LTSCT using the production lines it has acquired in Japan.
According to a report by The Economic Times, the divestment is part of Fujitsu General’s strategy to streamline its operations and focus on core areas, including its tech solutions segment. The power modules business, previously operated by its subsidiary Fujitsu General Electronics Ltd, is being sold as part of this portfolio restructuring.
The company has stated that the deal will result in an extraordinary gain of around ¥2 billion in the first quarter of its 2025 financial year.
Kaynes, in a stock exchange filing, stated that the acquisition does not impact its corporate structure or control and does not constitute a related party transaction, ensuring a smooth transition. The newly acquired assets will be fully integrated into Kaynes Semicon’s operations.
LTSCT, backed by Larsen & Toubro (L&T), has been investing significantly to establish itself in the semiconductor space. Concurrently, Kaynes is developing a new OSAT (outsourced semiconductor assembly and test) facility in Sanand, Gujarat, under India’s Semiconductor Mission.
Industry analysts view the deal as a strategic move aligning with India’s ambition to develop a self-reliant semiconductor ecosystem while also marking a step forward in India–Japan technology cooperation.
