TOKYO, Japan, July 9, 2014 — Renesas Electronics Corporation (TSE: 6723, “Renesas Electronics”), a premier provider of advanced semiconductor solutions, today announced its plan to reorganize the design and development functions (the “reorganization”) of Renesas Electronics Corporation and of its wholly-owned subsidiaries; Renesas Solutions Corporation (“Renesas Solutions”), Renesas System Design Co., Ltd. (“Renesas System Design”), and Renesas Engineering Services Co., Ltd. (“Renesas Engineering Services”). The changes will become effective on August 1, 2014.
1. Objectives of the reorganization
As announced in the press releases, “Renesas Electronics Shows Direction of Renesas Group” dated August 2, 2013, and “Renesas Electronics Issues New Business Direction Presentation ‘Reforming Renesas’” dated October 30, 2013, with an aim of realizing a company that excels in the global arena and contributes to the realization of safe and secure society, Renesas Electronics has implemented a reform plan for future growth and has been promoting it.
In accordance with the three pillars of the reform plan: (1) Reform businesses to better utilize market intelligence during product development; (2) Reform into a profit-oriented organization; and (3) Reform to a global management and organizational structure, Renesas Electronics identified fields and regions where growth is expected in the medium to long term and areas where it can outpace the competition, and will focus on three fields where it has strengths and can compete effectively. In parallel, Renesas Electronics has been carrying out structural reforms aimed at creating a solid organization that is consistently profitable, even when exposed to risks (natural disasters, market stagnation, etc.).
As part of these necessary structural reforms, Renesas Electronics has shifted its business domains from a product-orientation to an application-orientation to better address customer demand. It has also completed the reorganization of its manufacturing sites in Japan, the consolidation of the manufacturing business engaged in semiconductor front-end and back-end production as well as the reorganization of manufacturing-related Renesas Group companies, realigning production facilities in Japan and manufacturing-related group companies in Japan.
In order to support the successful implementation of the reform plan, Renesas Electronics is working to strengthen its ability to offer the following three solutions responding to market demand in the company's key domains: Device solutions; Kit solutions combining microcontrollers (MCUs) and Analog & Power semiconductor devices; and Platform solutions including options such as software developed in collaboration with the Renesas ecosystem's partner companies to address the customers' more complex and highly-functional systems.
2. Outline of the reorganization
The functions of the design and development units of Renesas Electronics, and of the Renesas Group companies in Japan engaged in design, development, and applied technology, are being redefined, and their organization will be reorganized accordingly on August 1, 2014.
Specifically, functions essential for the development of device solutions (mainly hardware), such as device development and device applied technology, will be consolidated at Renesas System Design with the aim of boosting development efficiency. In addition, the development of kits and platform solutions (mainly software), and business promotion functions, will be consolidated at Renesas Electronics to strengthen the solution offerings for expanding markets. Finally, Renesas Engineering Services will specialize in functions related to development and technical support with an aim of further boosting operational efficiency.
The design function of Renesas Solutions will be transferred to Renesas Electronics and Renesas System Design. Details regarding the operations of Renesas Solutions after the reorganization have not yet been decided.
- ① The kit and platform development functions and the field solution and sales promotion infrastructure functions of Renesas Solutions will be transferred to Renesas Electronics.
- ② The device development and device solution functions of Renesas Electronics will be transferred to Renesas System Design.
- ③ The device development and device solution functions of Renesas Solutions will be transferred to Renesas System Design.
- ④ The development support functions of Renesas Electronics will be transferred to Renesas Engineering Services.
Note: Details regarding the operations of Renesas Solutions after the reorganization have not yet been decided.
The reorganization of design and development functions involves measures to be carried out within the Renesas Group. Therefore, no major impact is anticipated on Renesas Electronics' consolidated financial results.
As Renesas Electronics works to implement reforms that enable it to grow and make a social contribution, the present realignment will provide an opportunity for the company to further strengthen its development system and offer solutions that better meet the needs of the market and of its customers.
The statements in this press release with respect to the plans, strategies and financial outlook of Renesas Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from such forward-looking statements due to several important factors including, but not limited to, general economic conditions in our markets, which are primarily Japan, North America, Asia, and Europe; demand for, and competitive pricing pressure on, products and services in the marketplace; ability to continue to win acceptance of products and services in these highly competitive markets; and fluctuations in currency exchange rates, particularly between the yen and the U.S. dollar. Among other factors, downturn of the world economy; deteriorating financial conditions in world markets, or deterioration in domestic and overseas stock markets, may cause actual results to differ from the projected results forecast.
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 renesas.com.Follow us on LinkedIn, Facebook, Twitter, and YouTube.
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.