SAN JOSE, Calif. -- Is Mitsubishi Electric Corp. re-entering the IC business in a big way?
Japan's Mitsubishi Electric (Tokyo) has acquired the buildings and the IC manufacturing facilities of Renesas Technology Corp.'s Kumamoto factory.
In 2003, Mitsubishi Electric transferred its system LSI and system memory businesses to Renesas. At the time, Renesas (Tokyo) was established as a joint venture between Mitsubishi Electric and Hitachi Ltd.
Mitsubishi Electric currently concentrates its resources on power and high-frequency optical devices. To meet the growing demand for these devices, Mitsubishi Electric has been working to increase the production capability for 6-inch wafers at its existing factory, the Kumamoto Factory of Power Device Works, also located in Kumamoto.
The company said that it has been seeking to manufacture its products using 8-inch wafers to further increase its production capability.
Meanwhile, Renesas is seeking to cut costs. In 2005, Renesas decided to withdraw from the flash memory business.
Since then, Renesas' Kumamoto factory, which was used primarily to produce flash memory products, has been operating under its capacity due to the business change. The Renesas Kumamoto factory is located on the same grounds as Mitsubishi Electric's Kumamoto Factory of Power Device Works.
Mitsubishi Electric and Renesas will discuss the details of the terms and conditions for this transfer, and Mitsubishi Electric will officially obtain the ownership of the factory on April 1, 2008.