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 announced the completion of its acquisition of Intersil Corporation. In connection with the closing of the transaction as of February 24, Intersil becomes a wholly-owned subsidiary of the Company. The Company will focus its efforts on future product development for Intersil's power management and precision analog solutions.

-The Company announced that it will transfer the electronics engineering service and image recognition system businesses of its wholly owned subsidiary, Renesas Semiconductor Package & Test Solutions Co., Ltd., to Hitachi Maxell, Ltd. (Hitachi Maxell). The subsidiary and Hitachi Maxell have signed a final agreement, and the transfer will be completed on May 1, 2017. The businesses that will be transferred are subcontracted development and production of electronic control boards used for semiconductor manufacturing equipment and various industrial applications, and the development, production, and sales of image recognition systems.

-The Company announced that it has reached final agreement with its subsidiary, Renesas Semiconductor Manufacturing Co., Ltd. (Renesas Semiconductor Manufacturing), TDK Corporation (TDK) and TDK's subsidiary TDK Shonai Corporation (TDK Shonai) on transferring Renesas Semiconductor Manufacturing's Tsuruoka Factory to TDK Shonai. The transfer of the factory will be completed around the end of March 2017.

-Major technical partnership agreements as of 2017:

  • Agreement with Great Wall Motor Co., Ltd. (based in China) to develop new-energy vehicles such as EVs and PHVs, and semi-conductor technology and solutions for self-driving cars.
  • Agreement with TTTech Computertechnik AG (based in Austria) to jointly develop a Highly Automated Driving (HAD) platform that supports the development of ECUs for self-driving cars.
  • 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

-The Company, based on a decision reached at its annual, general shareholders meeting that was held on June 28, 2016, changed the date on which its fiscal year ends, from March 31 to Dec. 31. As a result, the fiscal year that started in April 2016 ended on Dec. 31, 2016, covering a period of nine months.

-In the fiscal year that ended on Dec. 31, 2016, consolidated sales were JPY 471,030 million yen, a 10.4% same-period decrease; operating income was JPY 54,711 million yen, a JPY 33.3 billion same-period decrease; and ordinary income was JPY 49,986 million, a JPY 40.9 billion same-period decrease. Current net income returned to the parent company’s shareholders was JPY 44,119 million, a JPY 31.9 billion decrease over the same period. Sales generated by the automotive segment were JPY 231.8 billion, a 3.5% decrease compared to the same period during the previous year.



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 Dec. 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.
Feb. 2017 Acquired all stock shares in Intersil Corporation based in the USA, turning it into a subsidiary.

Supplemental Information 1

Technology Licensing Agreement

(As of Dec. 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