Renesas Electronics Announces its Plan to Transfer Semiconductor Manufacturing Equipment and to Lease Manufacturing Space
TOKYO, Japan, January 21, 2011 — Renesas Electronics Corporation (TSE: 6723), a premier supplier of advanced semiconductor solutions, today announced that it has transferred part of the semiconductor manufacturing equipment at the Kochi Factory, the company's production facility in Kochi, Japan, and has started leasing part of the manufacturing space within the facility, both to Sumitomo Electric Industries, Ltd. The company will continue its manufacturing at the remainder of the Kochi Factory on the first floor of the facility.
As part of its strategy related to the merger between Renesas Technology Corp. and NEC Electronics Corporation in April 2010, Renesas Electronics has been promoting organizational reforms to strengthen its business structure to become a semiconductor company resistant to changing markets. Renesas Electronics has been increasing its manufacturing efficiency at the Kochi Factory by improving the manufacturing capability of the first-floor line through miniaturization of the chip size and streamlining of the manufacturing equipment, and by consolidating into the first-floor lines the production of products that had been fabricated on the second-floor lines. After a thorough evaluation of the most effective use of the remaining manufacturing resources, Renesas Electronics has reached an agreement with Sumitomo Electric Industries to transfer part of the plant's equipment and to lease part of the available space.
On July 29, 2010, Renesas Electronics announced the results of its “100-Day Project” and introduced its three-pronged business strategy including formulation of growth strategies, realization of merger synergies, and implementation of structural reforms. The company has begun implementing these measures and building a business structure for sustainable, robust growth.
Overview of the Kochi Factory
|Location:||123 Kagami-cho Tokuoji, Konan, Kochi Prefecture, Japan|
|Employees:||Approximately 650 (as of January 1, 2011)|
|Major operations:||Front-end manufacturing of semiconductor devices|
|Product categories:||Microcontrollers (MCUs), mixed-signal devices, power MOSFETs, SoC products|
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723), the world's number one supplier of microcontrollers, is a premier supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad range of analog and power devices. Business operations began as Renesas Electronics in April 2010 through the integration of NEC Electronics Corporation (TSE:6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics has subsidiaries in approximately 20 countries worldwide. More information can be found at www.renesas.com.
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