March 7, 2019

TOKYO, Japan — Certain media reports were published since March 6, speculating on the temporary shutdown of Renesas factories. These reports were not based on a Renesas announcement.

Renesas is considering implementing measures to temporarily halt productions in accordance with the demand moving forward. This includes options to suspend the front-end factories for up to two months and the back-end facilities for several times over a period of a week. Any specific shutdown period would be decided taking demand trends and customers’ delivery status into consideration.

The background for considering a temporary shutdown of production is to flexibly address, in a timely manner, the fluctuating semiconductor demand caused by the potential impact of market uncertainties in the current fiscal year.

Renesas has experienced excess inventories in the past by not following the demand fluctuations despite its production adjustment. From that experience, Renesas intends to establish a structure capable of suppressing excess inventory and securing profit despite weakened demand in order to embrace any sudden changes in end demand, while adjusting production utilization to contain costs. Renesas will continue to make flexible decisions on the operation of its factories.

Renesas has been notifying customers and business partners of the impacts in a timely manner, and Renesas will promptly issue an announcement once additional information arise, such as impacts to our financial performance.

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.