SAN JOSE, Calif. – Japan’s Renesas Electronics Corp. will sell its semiconductor wafer fabrication facility in Roseville, Calif. to Germany’s Telefunken Semiconductors International LLC for approximately $53 million.
Telefunken intends to utilize the 200-mm fab in Roseville to manufacture its own analog/mixed-signal, high-voltage products and the products for its strategic foundry partners.
The company also will enter into a supply agreement with Renesas Electronics for manufacturing services at the Roseville factory. Under this agreement, it will focus on Renesas Electronics’ current customers without interruption.
The Roseville fab was once owned by NEC Electronics. Renesas assumed control of the fab when it merged with NEC Electronics.
For the most part, Telefunken was an analog and mixed-signal foundry. Last year, it announced a re-entry into merchant integrated circuits market with a focus on power management and high performance Interface. The newly released products are fabricated at Telefunken’s specialty analog fabrication facility in Heilbronn Germany. Proprietary processes such as silicon-on-insulator, a 700 volt high-voltage process and a high-speed silicon-germanium process enable the new devices to meet the highest performance standards at the lowest power consumption.
An aerial view of the fab in Roseville, Calif.
As reported, Renesas is moving to cut costs. As part of the strategies outlined through its 100-Day Project announced on July 29, 2010, Renesas Electronics ‘’has been considering and implementing various measures to improve manufacturing efficiency by promoting larger wafers, finer process node, and production concentration.’
Renesas planned to cut nearly 10 percent of its workforce, or about 4,000 jobs, by the end of 2010. It is also moving towards a fab-lite strategy. It will use foundries for devices at 28-nm and below. And it will no longer invest in new fabs.
With the spiraling trend towards fabless, is the industry is danger of putting too much control in too few hands as far as fabrication goes. Though it is the most expensive thing to own for technology companies, without a degree of control and availability of fab no industry can hope to bring new and better semiconductor products to the markets.
In-spite of so much demand for silicon why is there no efforts towards economy oriented fabs which can be run by at least a billion dollar company? Would universities be able to help in this move?
So many news from Renesas recently. Good or bad? I believe the management is having hard time. Just hope this company can reshape better so it can find its focus well. This company is really doing good in automotive field so they need to be picky in strategies.