SAN JOSE, Calif. - Japan's Renesas Electronics Corp. has decided to spinoff its mobile chip unit into a new and consolidated subsidiary, Renesas Mobile Corp., effective Dec. 1, 2010.
The spinoff involves Renesas' Mobile Multimedia SoC Business Division, which offers system-on-chip (SoC) products for mobile devices and car navigation systems. It will also include the purchase of the wireless modem business of Nokia Corp., which is scheduled to be completed on Nov. 30.
The unit will have 1,800 employees. Ikuya Kawasaki is the CEO of the unit.
The combination of this mobile multimedia platform and assets acquired from Nokia will enable Renesas to offer more robust products in the arena, according to Tokyo-based Renesas.
Renesas Mobile will ship its first sample of modem chipset solutions incorporating LTE/HSPA+ modems in Q4 FY2010 to customers worldwide, including Nokia, which has already agreed to adopt Renesas Mobile's offering into their products.
Completing a merger transaction between Japan’s NEC Electronics Corp. and Renesas Technology Corp., the new combined entity--Renesas Electronics--commenced business operations on April 1.
When you do well you acquire, when you do badly you spin-off...don't you ever get a feeling that execs simply need something to do to justify their high level of compensation? ;-)...email me some stories to firstname.lastname@example.org, I am writing a short story on this topic...Kris