Renesas Electronics Corporation

Company Profile

■URL

https://www.renesas.com/en-us/

■Address

Toyosu Foresia, 3-2-24, Toyosu Koto-ku, Tokyo 135-0061, Japan

Business Overview

-A Japanese semiconductor manufacturer. It has the largest share of the global automotive micro controller market (37.7% in 2014 according to the Company's own research), and the third largest share of the global automotive semiconductor market as of 2015 (Source: Strategy Analytics, April 2016).

-The Innovative Network Corporation of Japan started investing in the Company in September 2013, and the Company moved into the black (generated operating profit and ordinary profit) in FY ended 2014.

-The Company intends to focus its investments on fast-growing areas like green vehicles and autonomous drive technologies.
Average annual growth rate by market

  • Semiconductors for HEVs and EVs: 18%
  • Semiconductors for Advanced Driver Assistance Systems (ADAS): 17%

(Source: Strategy Analytics reviewed by the Company)

-In Sep. 2016, the Company announced that it will acquire full ownership of Intersil Corporation, a U.S. semiconductor manufacturer. Acquiring Intersil's analog solutions will allow the Company to introduce a comprehensive product portfolio. The transaction is scheduled to be completed by the end of June 2017. The Company is aiming to regain the top spot in the global automotive semiconductor market by 2020.

-Major technical partnership agreements as of 2016:

  • Cohda Wireless in Australia: Inter-vehicle and road-to-vehicle (vehicle-to-everything: V2X) communications and connected autonomous vehicle (CAV) software
  • Taiwan Semiconductor Manufacturing Co. (TSMC): The two companies will jointly develop cutting-edge 28 nm process technologies. Joint development with TSMC began with 40 nm process technologies, and Renesas currently outsources production to TSMC. 



Financial Overview

-In FY ended Mar. 2016, consolidated sales were JPY 693,289 million (a 12.4% decrease on a year-over-year (y/y) basis), operating income was JPY 103,782 million (a 0.6% decrease y/y), ordinary income was JPY 102,100 million (a 3.1% decrease y/y), net income attributable to owners of the parent was JPY 86,292 million (a 4.8% increase y/y). IC sales for automotive accounted for 47.6% of IC sales

Note) The Company will change the month for ending the fiscal-year to December 31 from March 31, starting in FY 2016. 

Mid-term Growth Strategy

-In Nov. 2016, the Company announced its Mid-term Growth Strategy.
<Financial targets>

  • Growth rate of semiconductor sales: twice the market growth rate  
  • Gross profit margin (*1): 50%
  • Percentage of R&D expenses to sales (*1): 16-18%
  • Percentage of SG&A to sales (*1): 12-14%
  • Operating profit margin(*1): >20%

      (*1) : Non-GAAP numbers

Shareholders

-Listed on the First section of the Tokyo Stock Exchange  (As of Mar. 31, 2016)
Name or Company name Investment Ratio (%)
Innovative Network Corporation of Japan 69.15
Japan Trustee Services Bank, Ltd. 8.11
Hitachi, Ltd. 7.66
Mitsubishi Electric Corporation 6.26
Toyota Motor Corporation 2.49
Nissan Motor Co., Ltd. retirement benefits trust account
Trustee Mizuho Trust & Banking Co., Ltd.
Re-trustee Trust & Custody Services Bank, Ltd.
1.49
NEC Corporation 0.75
Denso Corporation 0.49
Canon Inc. 0.24
Panasonic Corporation 0.24
Total 96.88

Products

Development Kit for Automotive

Micro Controllers and Micro Processors


Smart Analog
Smart Analog ICs
Smart Analog MCUs

Secure MCUs

Embedded Systems Platform
Renesas Synergy Platform

Power MOSFET
MOSFETs for switching
Power MOSFETs for automotive

IGBT: Insulated-gate bipolar transistors

Intelligent Power Devices
High side drivers / Low side drivers
Thermal FETs

Transistors
Bipolar power transistors
Bipolar small signal transistors

Analog ICs for Automotive
CAN transceivers
ICs for car audio, Driver/receiver ICs for bus interface
Power supply ICs for R-Car


Analog & Mixed Signal
ICs for LED lighting

General-purpose Linear
Operational amplifiers
Comparators
Application specified reset ICs
Single-function reset ICs

LSI for Automotive
SoC; System on Chips for car information systems

History

Nov. 2002 NEC Electronics Corporation was established in Kawasaki, Kanagawa Prefecture. It was formed as a wholly owned subsidiary of NEC Corporation, which spun off its semiconductor operations except its general-purpose DRAM business.
April 2003 Renesas Technology Corporation was established by Hitachi, Ltd., which owned a 55% stake, and Mitsubishi Electric Corporation, which owned a 45% stake.
July 2003 NEC Electronics was listed on the first section of the Tokyo Stock Exchange.
April 2010 Renesas Electronics was established through the integration of NEC Electronics Corporation and Renesas Technology Corporation.
Sep. 2013 The Company issued third-party shares to be bought by Innovative Network Corporation of Japan, Toyota Motor Corporation, Nissan Motor Co., Ltd., Keihin Corporation, Denso Corporation, Canon Inc., Nikon Corporation, Panasonic Corporation, and Yasukawa Electric Corporation.

Supplemental Information 1

Technology Licensing Agreement

(As of Mar. 31, 2016)
Partner Item of Contract Contract date
Texas Instruments Incorporated
(U.S.)
Cross-licenses for semiconductor patents (includes subsidiaries) Mar. 02, 2011
ARM Limited
(UK)

Licensing-in of semiconductor designing technology

Dec. 22, 2015



>>>IR Information on Renesas Electronics

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Note: A figure in brackets ( ) indicates a loss