Renesas has announced a major restructuring plan, prompted by a projected sharp drop in 2008 sales and income loss.
Among the changes, the company plans to realign its standard products business, which is centered around products such as power MOSFETs and analog devices. The focus will now be on three main applications: power supplies for PCs/servers, imaging display equipment and automotive. Meanwhile, Renesas' core focus will remain its successful MCU business.
The heaviest impact seems to be on Renesas' production plants at various locations in Japan. For example, the company will consolidate lines at Kochi, its main manufacturing site for MCUs and mixed signal devices, and make efficiency savings at the Gunma Factory in Eastern Japan, which specialises in standard products such as diodes and linear devices.
Renesas expects the 'unfavourable business climate' to continue beyond 2009. Though it hasn't released its full 2008 figures yet, it forecasts that it will post a 'substantial reduction in net sales and income'. Net sales are likely to be down 28% on the previous fiscal year at 680 billion, down 270.5 billion. Operating income could be down to 110.0 billion, 153.6 billion lower than the year before.