Amid Merger Talks, Renesas Sells Fab to Fuji
Seeking to cut costs — and reportedly preparing for a big merger — Japan’s Renesas Electronics Corp. has sold a fab within one subsidiary, Renesas Northern Japan Semiconductor Inc., to Fuji Electric Co. Ltd.
Renesas will transfer Renesas Northern’s Tsugaru factory, based in Goshogawara, Aomori, to Fuji Electric. The companies plan to complete the transfer on July 1, 2012.
As part of its previous merger with NEC Electronics Corp. in 2010, Renesas has been reviewing and consolidating its manufacturing sites. Now, according to recent reports, Renesas , Fujitsu Ltd., and Panasonic Corp. are in talks to spin out their System LSI design and development operations into a separate company. That fabless entity would work with another manufacturing-related spinout, managed by GlobalFoundries, which would take over two fabs now owned by Renesas and Fujitsu.
So far, however, Renesas, Fujitsu and Panasonic have yet to discuss the deal.
In the meantime, Renesas continues to cut costs. In November of 2010, Renesas decided to spin off its Mobile Multimedia SoC Business Division and transfer the business to a new consolidated subsidiary, Renesas Mobile Corp. The spin-off, which offers system-on-chip (SoC) products for mobile devices and car navigation systems, was followed by the purchase of the wireless modem business of Nokia Corp.
Then, in March of 2011, Renesas sold its wafer fabrication facility in Roseville, Calif., to Telefunken Semiconductors International LLC. That 200mm fab was previously owned by NEC.
In January of 2012, Renesas obtained a portion of Mitsubishi Electric’s land in the Kitaitami operation. In turn, Mitsubishi Electric acquired Renesas’ manufacturing building located within the premises of Mitsubishi Electric’s Kitaitami operation. Also in January, Renesas exited the large-sized display driver IC business. Renesas SP Drivers Inc., a consolidated subsidiary of Renesas Electronics, will continue to supply small- and mid-sized display diver ICs as in the past.
In March, Renesas sold its high-power amplifier unit and the business operation of its manufacturing site, the Nagano Device Division, to Murata. As part of this ongoing review process, an agreement was reached last week to transfer the Tsugaru Factory to Fuji Electric, which had been considering a new manufacturing facility to further expand the supply capacity of its power semiconductor business. Fuji will continue to manufacture products currently being produced at the Tsugaru Factory for Renesas.
