12 Mar 2013
TOKYO, Japan, March 12, 2013 — Renesas Electronics Corporation (TSE: 6723), a premier supplier of advanced semiconductor solutions, and its subsidiary, Renesas Mobile Corporation (“RMC”), today announced that the Renesas Electronics Group (“the Group”) decided to start reviewing the direction of its mobile business.
Over the last few years, in a challenging economic context domestically and internationally, the Group has already accelerated structural reforms such as realignment of business portfolio and production sites, as well as reduction in workforce in order to safeguard its competitiveness. However, the Group needs to look at further measures, considering tougher-than-expected market conditions surrounding it. In the light of this, the Group announces today that it will be reviewing the scope of its activities, and refocusing its efforts and resources on its core business.
This means that the Group has decided to explore divestiture of RMC or explore alternative business models for RMC. This review would include all RMC's mobile business activities in all geographies, other than the business operations related to car information system and the industrial equipment business conducted by RMC: these business areas would not be affected by this review in any form, and the Group is committed to continue its operation in these areas.
The Group is indeed required to envisage such a strategic reappraisal of the mobile business activities, considering both the economic challenges the Group is currently facing, and a longer and lower than expected return on investment. This situation has led, over the last two years, to significant financial losses for RMC and its subsidiaries.
“I am proud of the expertise and professionalism with which RMC employees continue to apply for increased customer value. Renesas Electronics Group is committed to finding a reasonable solution for all stakeholders” said Tetsuya Tsurumaru, President of Renesas Electronics Corporation.
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.
About Renesas Mobile Corporation
Renesas Mobile Corporation is a wholly owned subsidiary of Renesas Electronics Corporation and offers advanced and innovative products and services for mobile phones, car infotainment solutions, consumer electronics and industrial applications. Renesas Mobile's mission is to develop, productize and deliver communications centric semiconductor chipsets and complete hardware and software platforms built on these chipsets to meet the needs of our customers in these markets. Renesas Mobile Corporation provides complete cellular chipset platform solutions include powerful applications processors, leadership and industry reference cellular modems, highly integrated radio frequency devices, intelligent power management solutions, and the complete system and software expertise to develop flagship devices more rapidly.
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