TOKYO Renesas Technology Corp. is boosting its Chinese operations by investing in a Chinese company in Xian along with a Chinese investment partner. The move is designed to expand sales of systems-on-a-chip boards for audio/visual product applications.
Renesas and Xian Capitech Venture Capital Co. Ltd (Capitech), will jointly invest in Xian RealMicro System Technology Co. (RealMicro), an embedded software developer. The trio announced the agreement Thursday (March 1). Renesas and Capitech will respectively invest 8 million RMB (about $1 million) to increase the software company's capital to 17 million RMB (about $2.2 million).
Renesas and Capitech saif they will participate in the management of RealMicro. Upon approval of the deal by the Chinese government, the parent company will be called Xian RealMicro Investment Consulting Co.
RealMicro, established in July 2005, has already been developing embedded software for Renesas. With more electronics manufacturing shifting to China, Renesas said it intends to offer system-on-chip boards with more sophisticated graphical user interfaces.
"There are ample human resources and technologies for software development in Xian," said a spokeswoman of Renesas.
RealMicro will mainly develop embedded software for Renesas chips used for optical drives, DVD recorders and digital consumer products.