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Renesas to transfer wafer fab line to Sony

Posted: 30 Jan 2014 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor manufacturing? MCUs? wafer fabrication?

Renesas Electronics yesterday agreed to hand over the 12-inch front-end wafer fabrication line at its Tsuroka facility to Sony Semiconductor Corporation for a transfer price of about $73 million.

The Japanese firm has been promoting the realignment of Renesas Group's manufacturing sites at its home country in an effort to strengthen its financial base. As part of this process, Renesas Electronics is working to maintain and strengthen its high-quality technology in the areas where its strengths lie, such as flash MCUs and low-power operation technologies, while concentrating and consolidating its front-end facilities based on production efficiency and cost-to-performance ratio.

Sony, on the other hand, has been positioning its imaging unit as one of its core electronics businesses for the past two years. As part of this strategy, Sony has been exploring opportunities to increase its production capacity for image sensors, a key component used in mobile products such as smartphones and tablets, for which increasing demand is anticipated.

Once the transfer is finalised, system LSIs and others produced at the Tsuruoka factory will be produced there for Renesas Electronics by SCK on a contract basis for a certain period of time as agreed by both companies. After expiration of that period, Renesas will shift the production of the system LSIs to its Naka factory or discontinue production as previously announced to its customers.

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