Fujitsu General Ltd. announced on Monday that it will divest its power modules business, managed by subsidiary Fujitsu General Electronics Ltd. (FGEL), to India-based L&T Semiconductor Technologies Ltd. for approximately 2 billion yen (around USD 12.8 million). The decision, approved by the board earlier in the day, forms part of a wider strategic reorganisation of Fujitsu General’s business portfolio.

As part of the transaction, related production facilities will also be transferred to Kaynes Semicon Private Ltd., the contract manufacturing division of Kaynes Technology India Ltd. The deal is scheduled to close on 23 June, subject to regulatory approval under Japan’s Foreign Exchange and Foreign Trade Act.

Fujitsu General expects to book an extraordinary gain of approximately 2 billion yen in the first quarter of its fiscal year ending March 2026 due to the sale. The divestment is intended to streamline operations within the company’s Tech Solution Business and bolster its broader business foundation.

FGEL, based in Iwate, Japan, specialises in the manufacturing of electronic devices and communications equipment. Bengaluru-based L&T Semiconductor Technologies is a wholly owned subsidiary of Larsen & Toubro Ltd., focusing on the development and sale of semiconductor products.

Fujitsu General confirmed that it has no previous capital, personnel, or business links with L&T Semiconductor Technologies or Kaynes Semicon, and neither company is considered a related party.

The move underlines the rising trend of cross-border collaboration in the semiconductor industry and further strengthens industrial cooperation between Japan and India.