SAN JOSE, Calif. -- Completing a merger transaction between the former NEC Electronics Corp. and Renesas Technology Corp., the new combined entity--Renesas Electronics Corp.--commenced business operations on April 1.
Renesas (Tokyo) will be a publically traded company in Japan. When combined, the company had $10.212 billion in sales in 2009, making it the world's third largest chip maker, next to Intel Corp. and Samsung Electronics Co. Ltd.
Still, there is a lot of work to be done at Renesas. The company must integrate the operations of NEC Electronics and the old Renesas. That's no small task. And many of the tough decisions have yet to be made.
It has not been decided which fabs and leading-edge processes to keep. There also could be product overlaps and workforce redundancies. And profitability is a concern, as both NEC Electronics and Renesas lost money last year.
Going forward, Dan Mahoney, president and CEO of the company's U.S. unit, Renesas Electronics America Inc., believes the new and combined entity has the right formula, products and technologies. Previously, Mahoney was president and CEO of Renesas Technology America Inc.
During an interview at the Embedded Systems Conference (ESC) here, Mahoney gave six reasons why the new Renesas will succeed in the marketplace in 2010 and beyond:
1. The upturn. Thanks to the upturn and the right product mix, Renesas ''will growth faster than the market average.'' In fact, business is strong, as the company's fabs are ''running at full utilization.'' It is also growing outside its home turf in Japan.