Aug. 27--TOKYO -- Fujitsu Ltd.'s chipmaking unit said Thursday it plans to turn profitable in the next business year through March 2011 by carrying out aggressive cost cuts and slimming down its product portfolio.

Fujitsu Microelectronics Ltd. said it anticipates an operating profit of around 10 billion yen in fiscal 2010 compared with an anticipated loss of 15 billion yen for the current fiscal year by cutting 80 billion yen in costs.

The company also announced that it will jointly develop next-generation 28-nanometer chips with Taiwan Semiconductor Manufacturing Co., in another move to outsource production of chips using cutting-edge technology to its Taiwanese partner.

But Fujitsu Microelectronics President Haruki Okada denied any immediate plans to merge its chip business with a domestic competitor, dismissing speculation of further realignment in the struggling industry fueled by a planned merger between Renesas Technology Corp. and NEC Electronics Corp.

"We are not completely denying any future possibility, but the most important thing for us now is to continue generating profits on our own," Okada said.

While he said chip demand has shown signs of recovery since February, Okada said the company does not expect large growth in sales over the next few years.

The company anticipates sales of 310 billion yen in fiscal 2010, compared with projected sales of 290 billion yen in fiscal 2009.

Okada said the firm will also focus its resources in four core businesses including automotive, industrial equipment, advanced imaging, and mobile and ecological areas.

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