Welcome!

News Feed Item

Renesas Electronics and J-Devices Sign Memorandum of Understanding on Transfer of Back-End Facilities

Renesas Electronics Corporation (TSE: 6723, Renesas), a premier supplier of advanced semiconductor solutions, and J-Devices Corporation (J-Devices) today announced that they signed a Memorandum of Understanding today regarding the transfer of the semiconductor back-end production business of three facilities operated by Renesas’ wholly owned manufacturing subsidiaries (the Hakodate Factory of Renesas Northern Japan Semiconductor, Inc. (Renesas Northern Japan), the Fukui Factory of Renesas Kansai Semiconductor Co., Ltd. (SKS), and the Kumamoto Factory of Renesas Kyushu Semiconductor Corp. (Renesas Kyushu)) and Renesas Northern Japan’s wholly owned subsidiary, Hokkai Electronics Co., Ltd. (Hokkai Electronics) to J-Devices.

This proposed transaction aims at building a long-term, mutually beneficial relationship between the two companies as strategic partners in the semiconductor production business. With today’s Memorandum of Understanding as the basis, the two companies plan to negotiate a final agreement and to complete the transfer in early June 2013. As the definitive terms of the proposed transaction including the transfer method are currently being negotiated, they are omitted from this press release. They will be announced when definitive agreements are completed.

1. Background and Purpose of the Transfer
As announced on July 3, 2012, in “Renesas Electronics Announces the Direction of Various Measures to Establish Robust and Profitable Structure,” Renesas is proceeding with the restructuring of Renesas Group production facilities in Japan in order to strengthen its revenue base. As part of this process, under a production strategy in which the back-end facilities in Japan specialize in production of high-value added products with increasing outsourcing ratio as well as production ratio at Renesas overseas sites as a result, the Yonezawa Factory of Renesas Northern Japan and the Oita Factory of Renesas Semiconductor Kyushu Yamaguchi Co., Ltd. were to be maintained and strengthened, and the Hakodate Factory of Renesas Northern Japan, the Fukui Factory of SKS, and the Kumamoto Factory of Renesas Kyushu (the Hakodate Factory, Fukui Factory, and Kumamoto Factory are referred to collectively below as “the facilities to be transferred”) were to be “considered for transfer within one year” in a process of selection and focus of business operations. Accordingly, Renesas began looking for a transfer assignee with whom it could expect to build a long-term partnership that would strengthen the competitiveness of the facilities to be transferred and provide a high-quality, reliable supply of products.

As Japan's largest independent company devoted to semiconductor assembly and test operations for customers, J-Devices understands that, to further grow its business, it must be cost-competitive with business rivals based outside of Japan. To that end, J-Devices believes it is of the utmost importance to expand the scale of its operations.

Against this background, Renesas and J-Devices came to a common understanding, and as the first step in the building of a long-term partnership between the two companies, a Memorandum of Understanding was reached today to transfer the semiconductor back-end production business of the facilities to be transferred and also Hokkai Electronics, which performs production support operations for the Hakodate Factory, to J-Devices by early June of this year.

The current employees of the transferred facilities will be “on loan” to J-Devices for a set period, under the premise that they will be reassigned to J-Devices on the basis of individual agreements in future. The Renesas products which will be manufactured at the facilities to be transferred will continue to be supplied by Renesas to customers with the quality, delivery schedules, service equal to or better than before even after the transfer.

In addition to the current seven facilities of J-Devices (Usuki, Oita Prefecture (Headquarters); Kitsuki, Oita Prefecture (Headquarters functions); Shibata-gun, Miyagi Prefecture; Aizuwakamatsu, Fukushima Prefecture; Miyawaka, Fukuoka Prefecture; Oita, Oita Prefecture; and Satsumasendai, Kagoshima Prefecture), the present transfer will add an additional three production facilities. This will make J-Devices one of the world’s top five OSAT (Outsourced Semiconductor Assembly and Test) service providers.

At the same time, the advantages gained as a long-term strategic partner of Renesas, including larger business scale, fusion of technical capabilities, and expanded product lineup, will enable J-Devices to improve cost competitiveness, technical capabilities, and product quality, allowing it to contribute to the continued development of the semiconductor industry as a world-top-level OSAT service provider and also providing substantial benefits for customers.

2. Overview of Renesas Electronics Corporation and J-Devices

(1)     Company Name     Renesas Electronics Corporation
(2)     Headquarters     1753 Shimonumabe, Nakahara-ku, Kawasaki, Kanagawa 211-8668, Japan
(3)     Representative Director     Representative Director, President: Yasushi Akao

Representative Director and Executive Managing Vice President: Masaki Kato

(4)     Major Operations     Research, development, design, manufacture, sale, and servicing of semiconductor products
(5)     Capital Stock     153.2 billion yen (As of March 31, 2012)
(6)     Consolidated Sales     883.1 billion yen (For the fiscal year ended March 31, 2012)
(7)     Established     April 1, 2003
(8)     Employees     41,900 (Consolidated, As of September 30, 2012)
(9)     Major Shareholders and Equity Ratio    

Japan Trustee Services Bank, Ltd.  32.44%

Hitachi, Ltd.  30.62%

Mitsubishi Electric Corporation  25.05%

NEC Corporation  3.02%

(10)     Relationships between Related Parties

 

Capital Relationships     There is no capital relationship between Renesas Electronics and J-Devices required to be referred to herein. There is no capital relationship between affiliates of Renesas Electronics and J-Devices required to be referred to herein.

 

Personnel Relationships     There is no personnel relationship between Renesas Electronics and J-Devices required to be referred to herein. There is no personnel relationship between affiliates of Renesas Electronics and J-Devices required to be referred to herein.

 

Business Relationships     There is transaction related to outsourcing of semiconductor manufacturing from Renesas Electronics to J-Devices.

There is no business relationship between affiliates of Renesas Electronics and J-Devices required to be referred to herein.

 

    Status of Related Parties     Renesas Electronics is not deemed to be a related party of J-Devices. Affiliates of Renesas Electronics are not deemed to be a related party of affiliates of J-Devices.
             
(1)     Company Name     J-Devices Corporation
(2)     Headquarters     1913-2 Fukura, Usuki-shi, Oita, Japan
(3)     Representative Director     CEO: Yoshifumi Nakaya
(4)     Major Operations     Back-end manufacturing of semiconductor devices (Wafer test, Assembly and Final test)
(5)     Capital Stock     1.77 billion yen
(6)     Consolidated Sales     44.7 billion yen (For the fiscal year ended March 31, 2012)
(7)     Established     November 6, 1970
(8)     Employees     3,684 (As of January 1, 2013)
(9)     Major Shareholders and Equity Ratio     Yoshifumi Nakaya, etc. (Note 1) 60.0%

Amkor Technology Inc. 30.0%

Toshiba Corporation 10.0%

(10) Relationships between Related Parties

 

Capital Relationships     There is no capital relationship between J-Devices and Renesas Electronics required to be referred to herein. There is no capital relationship between affiliates of J-Devices and Renesas Electronics required to be referred to herein.

 

Personnel Relationships     There is no personnel relationship between J-Devices and Renesas Electronics required to be referred to herein. There is no personnel relationship between affiliates of J-Devices and Renesas Electronics required to be referred to herein.

 

Business Relationships     There is transaction related to outsourcing of semiconductor manufacturing from J-Devices to Renesas Electronics.

There is no business relationship between affiliates of J-Devices and Renesas Electronics required to be referred to herein.

 

    Status of Related Parties     J-Devices is not deemed to be a related party of Renesas Electronics. Affiliates of J-Devices are not deemed to be a related party of affiliates of Renesas Electronics.

Note 1: Existing shareholders who invested before the capital injection from Amkor Technology Inc. and Toshiba Corporation.

3. Outline of the Facilities to be Transferred

(1)     Name     Hakodate Factory, Renesas Northern Japan Semiconductor, Inc.
(2)     Location     145-1, Aza-Nakajima, Nanae-cho, Kameda-gun, Hokkaido, Japan
(3)     Major operations     Semiconductor back-end production and contract manufacturing service
(4)     Employees     Approximately 260 (As of January 1, 2013)
             
(1)     Name     Fukui Factory, Renesas Kansai Semiconductor Co., Ltd.
(2)     Location     1 Ohmaki, Harue-cho, Sakai-shi, Fukui, Japan
(3)     Major operations     Semiconductor back-end production
(4)     Employees     Approximately 290 (As of January 1, 2013)
             
(1)     Name     Kumamoto Factory, Renesas Kyushu Semiconductor Corp.
(2)     Location     272-10, Oaza-Takaono, Ozu-machi, Kikuchi-gun, Kumamoto, Japan
(3)     Major operations     Semiconductor back-end production and contract manufacturing service
(4)     Employees     Approximately 270 (As of January 1, 2013)
             
(1)     Name     Hokkai Electronics Co., Ltd.
(2)     Location     289-12, Higashi-cho, Yakumo-cho, Futami-gun, Hokkaido, Japan
(3)     Major operations     Support business of semiconductor back-end production
(4)     Employees     Approximately 60 (As of January 1, 2013)
       

4. Schedule Moving Forward

End of February 2013

:

 

Conclusion of final agreement on the transfer (scheduled)

Early June 2013

:

Date of the transfer (scheduled)

 

5. Future Prospects

The effect of the transfer on the consolidated financial performance of Renesas is not yet clear, and an announcement will be made as soon as it is determined.
 

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE: 6723), the world's number one supplier of microcontrollers, is a premiere supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad-range of analog and power devices. Business operations began as Renesas Electronics in April 2010 through the integration of NEC Electronics Corporation (TSE: 6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics has subsidiaries in 20 countries worldwide. More information can be found at www.renesas.com.

About J-Devices Corporation

J-Devices is the largest independent semiconductor assembly and test company in Japan with seven factories in Japan. The original company (named Nakaya Microdevices) was established in 1970 and offers a broad lineup of packages including thermally enhanced BGA, CMOS sensor, leadframe and other original packages. J-Devices offers skilled package development as well as the full turnkey "one stop" service such as wafer sort, assembly, and final testing for consumer and automotive product.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists discussed...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...