TOKYO -- Two of Japan's largest chip makers, Hitachi Ltd. and Mitsubishi Electric Corp. have agreed to merge their chip operations -- excluding DRAM memories -- into a new $7 billion semiconductor company to be called Renesas Technology Corp. Hitachi is expected to own 55% of Renesas with Mitsubishi holding 45%.
If the merger can be brought off successfully Renesas would appear high on the world semiconductor rankings, probably in the number two position. It could also mark a departure by two major Japanese companies from a vertically-integrated corporate business model.
The company, with a name derived from Renaissance Semiconductor for Advanced Solutions, is due to be established on April 1, 2003. The agreement is a result of discussions to integrate the system LSI businesses of the two companies agreed to on March 18, 2002 (see March 24 story), the companies said today (October 3, 2002).
At the same time the companies are merging their DRAM operations within a previously established Hitachi, NEC 50:50 joint venture called Elpida Memory Inc. (see October 3 story).
The companies said they would both move their respective semiconductor operations into Renesas, including microcomputer, logic, analog and discrete devices and memory (flash memory, SRAM etc.) with the exception of DRAMs. Overall, Renesas Technology Corp. should achieve sales of over 900 billion yen in FY 2003, its first year, the companies said, or about $7.33 billion at present exchange rates.
Koichi Nagasawa, presently president of semiconductor operations at Mitsubishi Electric, is slated to be appointed chairman and chief executive officer of Renesas and Satoru Ito, presently president and chief executive officer of semiconductor and integrated circuits at Hitachi is due to be appointed president and chief operating officer of Renesas.
The companies said the move was an attempt to address the increasingly short development cycles required for semiconductor chips, something particularly true in the personal computer and mobile phone handset markets.
Under these circumstances Hitachi and Mitsubishi Electric decided that their semiconductor operations should operate autonomously as a new company to further accelerate decision-making on such issues as funding and capital investment.
The companies said that they believed Renesas could become the world's top supplier of 'System LSI' chips. System LSI is a Japanese term roughly akin to System-on-Chip. The companies said Renesas would aim for the leading position in the mobile, network, automotive, and digital home electronics applications.
RSS
Digital
10 emerging technologies to watch:
EE Times has compiled a list of emerging technologies that we think will be worth watching out for in 2010. Biofeedback or thought-control of electronics are among the contenders.
Hot applications in 2010:
We've compiled a list of 10 technology applications you should watch for in 2010, ranging from e-book readers to 3-D TVs. We examine the features that make these apps so compelling as well unresolved issues.
Top 25 predictions for semis in 2010:
2010 is just beginning to unfold in the electronics industry. Looking into our crystal ball, we have released our own chip forecasts--and other predictions--for 2010.
Seven things to fix in 2010:
The editors of EE Times came up with their own informal list of things we hope engineers fix in 2010, spanning everything from nano-lithography to space travel. What do you want to see get done this year?
'09 moves that are shaping the future:
This was a brutal year, but the industry gets a nod for showing grace under fire. Here's our Top 10 guide to the coming year, illustrating what to expect in 2010.
10 CEOs out in 2009:
It's been a tough year for the global electronics industry and CEOs. We survey the dismissal of 10 industry CEOs during the first three quarters of 2009 and what's ahead for the rest of the year.
Notable women in microelectronics:
There is no better time than a global economic recession to examine the keys to successful corporate governance. So, EE Times has compiled an international list that celebrates women who are business and technology leaders in semis.
EE Times updates Silicon 60:
Seventeen companies have been added to the lastest version of our Silicon 60 list of emerging startups. Forty-three companies survived as emerging companies that are still worth watching.
RSS| 
Digital| 
Mobile
