Renesas Electronics Further Strengthens its Global Material Procurement Structure

Establishes New Global Sourcing Management Division and Enhances Procurement Divisions in Mainland China and Taiwan

29 Feb 2012

TOKYO, Japan, February 29, 2012 — In its continuing efforts to promote the globalization of its material procurement structure, Renesas Electronics Corporation (TSE: 6723), a premier supplier of advanced semiconductor solutions, today announced that it will establish the Global Sourcing Management Division as an organization under direct control of management on April 1, 2012 to further strengthen and promote efficiency of its global material procurement structure. At the same time, Renesas aims to boost the global material procurement structure by enhancing the existing procurement offices within the sales subsidiaries in Mainland China and Taiwan.


Recently, with the expansion of outsourcing business from semiconductor companies, major foundries and assembly subcontractors in mainland China and Taiwan are ramping up their production capacities. In accordance with these changes, overseas materials and component suppliers are also increasing their production capacities, providing materials and components that are lower in price yet in now way inferior.


Renesas has been responding to these changes in the procurement environment by establishing a second overseas procurement office in Shanghai, China on April 1, 2011, adding to one already established in Taiwan. To strengthen these capabilities even further, Renesas is now establishing a Global Sourcing Management Division as a horizontal structure across the production, design, quality assurance, sales, materials procurement, and other divisions. In particular, Renesas aims at overall optimization and faster purchase decisions by evaluating materials and components under uniform standards. This will be achieved by concentrating the collection and evaluation results from different divisions and centralizing the authority to decide whether or not to adopt proposed items in this office for materials and parts that are under consideration for new procurement from either overseas or domestic (Japanese) sources for items that had previously been evaluated and their adoption determined by individual divisions. Additionally, Renesas will be strengthening the procurement and evaluation of new parts and materials through the procurement office in Shanghai, China by stationing resident engineers, etc., to assure that optimal parts and materials are always procured. Furthermore, Renesas will strengthen procurement capabilities and the speed of making purchase decisions in Taiwan by shifting the foundry and SIP memory procurement operations currently in the Renesas headquarters to the procurement base in Taiwan.


At the same time as assuring product quality, Renesas also strives to strengthen global materials procurement capabilities and improve product competitiveness in an effort that will function as a hedge against exchange rate fluctuations through increased overseas materials procurement.

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, infrastructure, and IoT applications that help shape a limitless future. Learn more at Follow us on LinkedIn, Facebook, Twitter, and YouTube.

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