ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Companies

Chipmaker Renesas announces new closures of Japan factories

As earnings turn around, company seeks even leaner operations

Tokyo-based Renesas supplies chips to Toyota and other big automakers.

TOKYO -- Japanese chipmaker Renesas Electronics will close an underperforming domestic factory and shut down another production line, continuing a long consolidation for the world's second-largest supplier of microcontrollers used used in increasingly high-tech cars.

The Tokyo-based company on Friday announced the cutbacks to operations at its Yamaguchi and Shiga plants in western Japan, both of which belong to wholly owned subsidiary Renesas Semiconductor Manufacturing. The closures will take place in two to three years, and affected products will be discontinued or made elsewhere.

The Yamaguchi plant makes commodity-grade microcontrollers used in industrial machinery. Its six-inch silicon wafer production has been rendered inefficient by lines using bigger wafers that yield more semiconductors. Renesas intends to shift production to plants using wafers of eight inches or greater.

The closures will bring the chipmaker to a total of eight domestic factories, down from 22 at the end of March 2011, the month a massive earthquake rocked northeast Japan. The disaster hit Renesas hard, as did the yen's appreciation thereafter, prompting a rescue by a government-backed fund and industrial customers including Toyota Motor.

Now, with earnings rebounding and the fund reducing its stake, chipmaker has started to chase growth again.

The production line slated for closure at the Shiga plant makes power semiconductors and other products. Another line making laser diodes and other compound semiconductors will continue running.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends April 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media