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Renesas cuts costs, consolidates Kochi facility

Posted: 26 Jan 2011 ?? ?Print Version ?Bookmark and Share

Keywords:Renesas' Kochi fab? factory consolidation? lease agreement with Sumitomo Electric?

Bent on reducing costs, Renesas Electronics Corp. has consolidated its manufacturing facility in Kochi, Japan. Its cost-cutting scheme also involves leasing part of the production area within the Kochi fab to Sumitomo Electric Industries Ltd.

''Renesas Electronics has been increasing its manufacturing efficiency at the Kochi factory by improving the manufacturing capability of the first-floor line through miniaturization of the chip size and streamlining of the manufacturing equipment, and by consolidating into the first-floor lines the production of products that had been fabricated on the second-floor lines,'' according to Renesas.

''After a thorough evaluation of the most effective use of the remaining manufacturing resources, Renesas Electronics has reached an agreement with Sumitomo Electric Industries to transfer part of the plant's equipment and to lease part of the available space,'' Renesas added.

As part of its strategy related to the merger between Renesas Technology Corp. and NEC Electronics Corp. in April 2010, Renesas Electronics has been ''promoting organizational reforms'' to strengthen its business structure.

On July 29, 2010, Renesas Electronics announced the results of its "100-Day Project" and introduced its three-pronged business strategy including formulation of growth strategies, realization of merger synergies and implementation of structural reforms.

Renesas in July said it plans to cut nearly 10 percent of its workforce, or about 4,000 jobs, by the end of 2010. It is also moving towards a fab-lite strategy and will use foundries for devices at 28nm and below. Lastly, the company will no longer invest in new fabs.

Renesas plans to use outside foundries�such as GlobalFoundries Inc. and TSMC�on all of its 28nm and smaller geometry semiconductor products. In line with this change, the company has positioned the 300mm wafer lines at Naka plant and Renesas Electronics Yamagata Semiconductor's Tsuruoka plant as manufacturing facilities for the company's basic products, especially for SoCs up to 40nm.

In October, loss-ridden Renesas lowered its forecast and announced an early retirement program for its employees in Japan. As part of the plan, Renesas decided to spin off its mobile chip unit into a new and consolidated subsidiary, Renesas Mobile Corp., effective December 1, 2010.

Separately, Renesas this week announced its plan to establish a new overseas procurement office within its sales subsidiary in China, Renesas Electronics (Shanghai) Co. Ltd, to promote globalization of the material procurement structure to address the company's aim of expanding its global business. The new structure will be Renesas Electronics' second overseas procurement office adding to the one in Taiwan, and is scheduled to start operations on April 1, 2011.

On the product front, Renesas recently announced the availability of its ultralow-noise heterojunction FET product, the NE3520S03, which features the industry-leading low noise characteristics for satellite broadcast reception applications.

The company recently introduced 32 new N-channel power MOSFETs with voltage tolerances of 40 and 55V. The new power MOSFETs include the NP75N04YUK device featuring a compact HSON package with one-half the mounting area of the existing TO-252 package and the capability to handle current flows up to 75A.

It recently announced the availability of a family of 576Mb low-latency DRAM products (�PD48576109, �PD48576118, �PD48576209, �PD48576218, and �PD48576236) for network equipment.

The new Renesas recently outlined its MCU roadmap, disclosing that it plans to blanket the market with a plethora of products based on its new architecture.

- R. Mark LaPedus
EE Times

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