UPDATE 5-Fujitsu Q4 profit halves; outsourcing chips to TSMC

* Q4 profit Y55.4 bln vs Y114.4 bln profit a year earlier

* Sees annual profit of Y80 bln vs consensus Y23.8 bln profit

* Fujitsu to outsource chip production to TSMC

* To team with TSMC in next-generation chip development

* Shares up 1.7 pct before results, market up 3.9 pct

By Sachi Izumi

TOKYO, April 30 (Reuters) - Japan's Fujitsu Ltd (6702.T) logged a 52 percent fall in quarterly profit, hit by drops in chip prices and weak demand for electronics, and said it would outsource semiconductor production to Taiwan's TSMC (2330.TW).

Fujitsu's chip business has been battered by a global downturn that has already pushed makers such as Germany's Qimonda (QMNDQ.PK) into insolvency and led others to seek new partnerships.

Fujitsu has been looking for a buyer or partners for the struggling operations while it shifts its focus to relatively solid server and services businesses. It also sealed a deal to sell its hard disk drive operations to Toshiba Corp (6502.T) for 30 billion yen ($308 million) on Thursday.