Fujitsu and Panasonic will set up a joint venture to merge their chip design business in autumn 2014 at the earliest, reported Nikkei on April 15. The new company, which is a fabless business, will have an initial capital of 50 billion yen (US$488 million; US$1 = 102.46 yen), of which Fujitsu will take up 40% and Panasonic 20%. The other 40% will be funded by the Development Bank of Japan in exchange of possible preferred stock. The ownership of both companies' related intellectual property will be transferred to the joint venture. The two companies agreed the partnership in February 2013, and have been negotiating details ever since.