Hitachi cuts out making chips

The Japanese company which sounds like a sneeze, Hitachi, has decided that it is not worth making chips any more.

The company announced that it would cease production of chips used in information and telecoms hardware by the end of March 2014.

According to a statement, the company believes that the semiconductor industry has seen an increasingly horizontal division of labour in terms of development, design and manufacturing in recent years.

All this horizontal stuff makes it harder to make money and Hitachi is better at making other things such as nuclear reactors and washing machines.

Culling chips from its business would boost cost efficiency and competitiveness, the statement said.

Hitachi semiconductors were used extensively by Hitachi, Casio, Sharp and Omron and were at their peak in the good old days when pocket calculators were considered cutting edge technology. Most of the company’s news has been about its storage business lately.