Renesas Electronics to reorganize



Renesas Electronics has shifted its business domains from a product orientation to an application orientation to better address customer demand

Renesas Electronics Corporation (TSE: 6723, “Renesas Electronics”), a premier provider of advanced semiconductor solutions, today announced its plan to reorganize the design and development functions (the “reorganization”) of Renesas Electronics Corporation and of its wholly-owned subsidiaries; Renesas Solutions Corporation (“Renesas Solutions”), Renesas System Design Co., Ltd. (“Renesas System Design”), and Renesas Engineering Services Co., Ltd. (“Renesas Engineering Services”). The changes will become effective on August 1, 2014.

Objectives of the reorganization
Renesas Electronics has implemented a reform plan for future growth and has been promoting it. In accordance with the three pillars of the reform plan: (1) Reform businesses to better utilize market intelligence during product development; (2) Reform into a profit-oriented organization; and (3) Reform to a global management and organizational structure, Renesas Electronics identified fields and regions where growth is expected in the medium to long term and areas where it can outpace the competition, and will focus on three fields where it has strengths and can compete effectively. In parallel, Renesas Electronics has been carrying out structural reforms aimed at creating a solid organization that is consistently profitable, even when exposed to risks (natural disasters, market stagnation, etc.).

As part of these necessary structural reforms, Renesas Electronics has shifted its business domains from a product orientation to an application orientation to better address customer demand. It has also completed the reorganization of its manufacturing sites in Japan, the consolidation of the manufacturing business engaged in semiconductor front-end and back-end production as well as the reorganization of manufacturing-related Renesas Group companies, realigning production facilities in Japan and manufacturing-related group companies in Japan.

In order to support the successful implementation of the reform plan, Renesas Electronics is working to strengthen its ability to offer the following three solutions responding to market demand in the company's key domains: Device solutions; Kit solutions combining microcontrollers (MCUs) and Analog & Power semiconductor devices; and Platform solutions including options such as software developed in collaboration with the Renesas ecosystem's partner companies to address the customers' more complex and highly-functional systems.

Outline of the reorganization
The functions of the design and development units of Renesas Electronics, and of the Renesas Group companies in Japan engaged in design, development, and applied technology, are being redefined, and their organization will be reorganized accordingly on August 1, 2014.

Specifically, functions essential for the development of device solutions (mainly hardware), such as device development, sales promotion infrastructure, and device applied technology, will be consolidated at Renesas System Design with the aim of boosting development efficiency. In addition, the development of kits and platform solutions (mainly software), and business promotion functions, will be consolidated at Renesas Electronics to strengthen the solution offerings for expanding markets. Finally, Renesas Engineering Services will specialize in functions related to development and technical support with an aim of further boosting operational efficiency.

The design function of Renesas Solutions will be transferred to Renesas Electronics and Renesas System Design. Details regarding the operations of Renesas Solutions after the reorganization have not yet been decided.