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Renesas closes assembly, test division

Posted: 29 Jun 2011 ?? ?Print Version ?Bookmark and Share

Keywords:close operations? assembly? test? large-capacity memory?

Renesas Electronics Corp. has released an announcement that it plans to close Renesas Eastern Japan Semiconductor Inc's Tokyo Device Division, which is located in Ome, Japan. Renesas Eastern Japan Semiconductor is a wholly-owned subsidiary of Renesas Electronics. The closure is expected to be completed by March 2012.

Renesas will proceed with the necessary measures while consulting closely with customers. Among the measures that need to be done would be transferring the production volume from the Tokyo Device Division to other Renesas manufacturing sites and discontinuing some of the products. The company also plans to accumulate excess production by front-loading the production schedule for those products that require time to shift production to alternate sites.

Since its establishment in 1963 as Ome Electronics Kogyosho Ltd, the Tokyo Device

Division of Renesas Eastern Japan Semiconductor has specialized in the assembly and test of devices such as transistors, analog ICs, LCD drivers, and memory devices. Its semiconductor assembly operations focus on large-capacity memory products employing multilayer chip-stacking technology and single-wafer testing technology.

In addition to back-end production for Renesas Electronics, the Tokyo Device Division has taken steps to expand its contract production business by leveraging the exclusive technologies mentioned above. However, the rise of overseas competitors, particularly in Asia, has led to fierce competition and an extremely unfavorable business climate.

The 100-Day Project, announced by Renesas Electronics in July 2010, calls for "improving manufacturing efficiency through expansion of overseas business and production concentration" in its policy for back-end facilities, and accordingly the company is oriented toward strengthening its overseas production capacity and increasing outsourcing of production. In line with this policy, Renesas Electronics has examined the trajectory of the Tokyo Device Division of Renesas Eastern Japan Semiconductor within the overall back-end production policy of the company and has decided to close down its operations.

Talks are planned between labor and management regarding the treatment of the employees of the business unit following its closure.

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