LONDON The carefully prepared merger transaction of NEC Electronics Corp. and Renesas Technology Corp. has been completed to create Renesas Electronics Corp., the world's third (or fourth) largest chip company. As a result of its merger Renesas is roughtly the same size as Toshiba and tied in third place with annual sales of about $10 billion.
The englarged company employs approximately 47,000 people and claims to be world's number one supplier of microcontrollers as well as being a leading supplier of advanced SoC chips and a broad range of analog and power devices.
The actual ranking depends on the period surveyed and who and when is taking the soundings. According to an iSuppli Corp. top-twenty ranking from November 2009, Renesas Technology had 2009 sales of $5,664 million in 2009 and NEC Electronics had 2009 sales of $4,403 million This would give the enlarged entity annual sales of $10,067 million compared to Toshiba's 2009 sales of $10,640 million. However, Gartner recently estimated Toshiba's 2009 annual sales at $9,604 million, which would rank Renesas third.
Regardless of ranking Renesas Electronics commenced business operations today (April 1) with the appointment of Junshi Yamaguchi as chairman and Yasushi Akao as the president of the board of directors. The expansion of Renesas comes seven years after the company was founded on April 1, 2003 as a merger of the semiconductor operations of Hitachi Ltd. and Mitsubishi Electric Corp.
Renesas Electronics also announced that it had raised 134.6 billion yen (about $1.4 billion) by issuing shares of its common stock to NEC Corp., Hitachi and Mitsubishi Electric. As a result of the merger and the additional stock distribution the ownership of Renesas Electronics is: NEC holds 33.97 percent, Hitachi holds 30.62 percent, Mitsubishi holds 25.05 percent and the Japan Trustee Services Bank Ltd. holds 1.49 percent.
Related links and articles:
NEC, Renesas sign deal to merge in 2010
Renesas readies microcontroller fab in China
NEC, Renesas clear manufacturing decks
Comparative table of MCUs