Renesas Recovers and Revitalizes

Author:
Reported by Cliff Keys, Editorial Director, PSD

Date
06/22/2011

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After the earthquake, the company rebuilds and drives forward

I had the pleasure to meet with Robert Green, President and CEO of Renesas Electronics Europe at the company's recent press briefing in Munich, Germany. Robert gave an open and frank update on the company's progress throughout the earthquake disaster in Japan and a forward-looking overview.

Renesas Electronics Corporation (TSE: 6723) recently released an updated production schedule for its Naka wafer fabrication factory in Hitachinaka, Ibaraki. Having resumed mass production at both the 200- and 300-mm wafer fabrication lines, the key highlight of the new schedule is that Renesas expects it will be capable of significantly moving up the schedule by one month from the end of October to the end of September for when the supply (shipment) capacity will return to pre-earthquake levels. The second preliminary schedule includes two updates as follows: Schedule for mass production at both the 200- and 300-mm wafer fab lines Renesas began test production on the 200-mm (8-inch) and 300-mm (12-inch) wafer fabrication lines on April 23 and April 25, respectively, and has achieved the same results as pre-earthquake levels in quality and reliability testing, etc. Subsequently, Renesas succeeded in resuming mass production of both the 200-mm (8-inch) and 300-mm wafer fabrication lines from June 1 and June 6, respectively, as scheduled. Expected timing when shipment capacity returns to that of pre-earthquake levels with additional supply from Renesas Group's other factories and outside foundries Having further accelerated the restoration steps for part of the manufacturing equipment at the Naka factory, Renesas now expects it will be capable of significantly moving up the schedule of when the shipment capacity will return to that of pre-earthquake levels with additional supply from other factories and outside foundries, from the end of October to the end of September. Renesas Electronics will continue to focus all possible effort on the recovery work at the Naka factory. The company expresses gratitude for all the support it received from companies outside the Renesas Group, which helped to speed up the resumption of operation and move up the production schedule. While it is the company's intent to follow the above schedule to the best of its ability, the published dates may change. The schedule assumes a stable source of electrical power and no further damage from subsequent aftershocks.

Robert explained that since the merger with NEC in April 2010, through the integration of NEC Electronics Corporation and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications, the company has speedily implemented many structural reforms to maximize economies of scale and to avoid unnecessary duplication of effort. The company will play to its considerable strengths in MCU, Analog & Power and SoC. The company has achieved full year operating profit in FY2011/3, faced the earthquake disaster in Japan with diligence and is well-placed to build on the innovations made to further drive growth. More information can be found at www.renesas.com

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