31 Jan 2012
TOKYO, Japan, January 31, 2012 — Renesas Electronics Corporation (“Renesas”, TSE: 6723), a premier supplier of advanced semiconductor solutions, today announced that it will withdraw from the large-sized display driver IC business.
1. Reasons to the withdrawal
Renesas has been working to improve the performance of the large-sized display driver IC business by implementing various measures including reducing manufacturing cost through process miniaturization and promoting development efficiency. However, the slowdown of the flat panel display market for mostly TVs and falls in prices have placed Renesas in a very difficult situation to secure profitability. With no short term recovery in sight, Renesas concluded it is difficult to stay in the large-sized display driver IC business and decided to withdraw from the business as part of its structural reform measures.
2. Outline of the large-sized display driver IC business
Renesas will withdraw from the development of driver ICs for large-sized displays effective March 31, 2012.
For those large-sized display driver ICs which have already started mass production, the company will discontinue its supply in consultation with existing customers using these drivers effective March 31, 2013.
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.
3. Impact on Renesas' financial results
The withdrawal does not have a significant impact to Renesas' consolidated financial results for the year ending March 31, 2012. Renesas will assess the impact from the withdrawal to its financial results for the year ending March 31, 2013 and intends to add details when confirmed information is available.
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723) delivers trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live. A global leader in microcontrollers, analog, power, and SoC products, Renesas provides comprehensive solutions for a broad range of automotive, industrial, home electronics, office automation, and information communication technology applications that help shape a limitless future. Learn more at renesas.com.
The content in the press release, including, but not limited to, product prices and specifications, is based on the information as of the date indicated on the document, but may be subject to change without prior notice.