Fujitsu Ltd., a Japanese maker of chips for servers, mobile phones and flat-panel TVs, will fire 400 workers at its domestic factories as demand for semiconductors declines amid a global recession.

Tokyo-based Fujitsu will reduce staff at its seven factories by terminating their labor contracts before their expiry next March, spokesman Toshiyuki Fukuoka said today.

The company will almost quadruple job cuts from 100 planned earlier because of a slump in sales, he added.

Fujitsu will extend a halt in its output for holidays for longer than last year, Fukuoka said. The company’s rivals Toshiba Corp. and NEC Electronics Corp. earlier announced similar plans to halt output.

Fujitsu gained 4.1 percent to 457 yen yesterday. Today is a national holiday in Japan.

Source:Bloomberg