Infosys loses ten-year, $1.5 billion contract announced just three months ago

Asia In Brief Infosys has lost a ten-year, $1.5 billion deal it announced just three months ago in September 2023.

The Indian services giant advised [PDF] investors of the deal on September 14th, describing it as “a Memorandum of Understanding with a global company to provide enhanced digital experiences, along with modernization and business operations services, leveraging Infosys platforms & AI solutions” with a total client target spend of $1.5 billion over 15 years.

That announcement included the caveat that Infosys and the unnamed company would have to conclude a Master Agreement to seal the deal.

A December 23rd filing revealed that didn’t happen.

“The global company has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the Master Agreement,” the statement revealed.

Infosys’s annual revenue topped $18 billion last year, so losing this deal won’t cause massive pain.

However, in its results reporting, Infosys highlights its ability to win large deals, and their total contract value. Now it’s had to admit one such deal has slipped away.

Fujitsu Japan spins out hardware biz

Fujitsu’s Japanese business has decided to spin out its PC, server, and storage business.

A December 26th announcement revealed a plan to create a subsidiary named “Fsas Technologies Inc." that will take over development, manufacturing, sales, and maintenance of its PRIMERGY and PRIMEQUEST servers, and the ETERNUS storage range.

Fujitsu’s enterprise PCs will also go to the new entity, as will its networking products and services.

The new company will commence operations on April 1st, 2024.

The decision was explained as reflecting the need “to establish a framework for comprehensive management and allocation of resources at all stages of this business”. Fujitsu has recently emphasized its “Uvance” services business.

Interestingly, Fsas won’t take on Fujitsu’s mainframe or Unix server businesses.

In August 2023, Fujitsu announced it would quit the PC business in Europe, effective April 1st, 2024.

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Samsung delays US fab startup

Samsung Electronics has reportedly pushed back the start of production at one of the semiconductor fabrication plants it’s building in the US State of Arizona.

A Seoul Economic Daily report on December 26th claimed that the facility’s planned commencement in the second half of 2024 has been pushed back to early 2025, due to “issues such as subsidies from the U.S. government and various licensing issues.”

Samsung’s concerns that buyers for the plant’s wares – 3nm and 4nm processors – may be scarce due to global economic conditions may also have influenced its decision.

Micron settles with Chinese DRAM-maker

US-based memory-maker Micron has reportedly settled an intellectual property dispute with Chinese rival Fujian Jinhua Integrated Circuit Co.

Bloomberg quoted a Micron spokesperson as saying “The two companies will each globally dismiss their complaints against the other party and end all lawsuits between them.” Chinese state media also reported the news.

The dispute between the two companies kicked off in 2018.

The settlement appears unrelated to China’s ban on sales of Micron products to some local entities. China alleged Micron’s products represented a national security concern, but Micron has told investors it awaits details of the accusation. Micron last week announced its most recent earnings report without offering any additional detail on the matter.

Japan's moonshot on track

On Christmas Day, Japan’s Space Exploration Agency annnounced its Smart Lander for Investigating Moon (SLIM) mission had reached lunar orbit.

SLIM will choose its own landing location using tech it’s hoped will improve the prospect of successful touchdowns for future lunar and planetary missions. It also carries a pair of tiny rovers.

The craft is expected to land on January 20th. ®