Welcome!

News Feed Item

Renesas Electronics and Sony Sign Definitive Agreement to Transfer Semiconductor Manufacturing Facility and Equipment, etc.

Renesas Electronics Corporation (“Renesas Electronics”, TSE: 6723) and Sony Corporation (“Sony”, TSE: 6758) today announced that they have signed a definitive agreement to transfer a semiconductor manufacturing facility and related equipment (the “Asset Transfer") at the Tsuruoka Factory (12-inch front-end wafer fabrication line of the semiconductor production facility) of Renesas Yamagata Semiconductor Co., Ltd. (“Renesas Yamagata Semiconductor”), a wholly-owned subsidiary of Renesas Electronics, to Sony Semiconductor Corporation (“SCK”), a wholly-owned subsidiary of Sony.

1. Background of the Asset Transfer

As announced on August 2, 2013, in the news release “Renesas Electronics Shows Direction of Renesas Group,” Renesas Electronics has been promoting the realignment of Renesas Group’s manufacturing sites in Japan in an effort to strengthen its financial base. As part of this process, Renesas Electronics is working to maintain and strengthen its high-quality technology in the areas where its strengths lie, such as flash MCUs (microcontrollers) and low-power operation technologies, while concentrating and consolidating its front-end facilities based on production efficiency and cost-to-performance ratio.

As announced on April 12, 2012, in the news release “Sony Transformation to Revitalize Electronics Business, Generate Growth and Drive New Value Creation,” Sony is positioning the imaging business as one of its core electronics businesses. As part of this strategy, Sony has been exploring opportunities to increase its production capacity for image sensors, a key component used in mobile products such as smartphones and tablets, for which increasing demand is anticipated.

Based on the background above, Renesas Electronics and Sony signed the Asset Transfer Agreement today, under which a semiconductor manufacturing facility and related equipment are expected to be transferred to SCK on March 31, 2014. This Asset Transfer is subject to the receipt of necessary regulatory approvals.

After the Asset Transfer, the system LSIs and others produced at the Tsuruoka Factory will be produced there for Renesas Electronics by SCK on a contract basis for a certain period of time as agreed by Renesas Electronics and Sony. After expiration of that period, Renesas Electronics will shift the production of the system LSIs to its Naka Factory or discontinue production, as Renesas Electronics previously announced to its customers.

2. Overview of the Assets to be Transferred

Assets to be transferred and their location  

The semiconductor manufacturing equipment as well as incidental assets, such as land, buildings, etc., at the Renesas Yamagata Semiconductor’s Tsuruoka Factory (12-inch front-end wafer fabrication line of the semiconductor production facility), as agreed by Renesas Electronics and Sony

1-11-73, Takarada, Tsuruoka City, Yamagata Prefecture, Japan

Book value   Estimated amount of book value as of the date of the Asset Transfer is being evaluated
Transfer price   7.51 billion yen
Current status   Renesas Yamagata Semiconductor’s Tsuruoka Factory (12 inch front-end wafer fabrication line of the semiconductor production facility)

3. Overview of Renesas Electronics and Sony

(1) Company Name   Renesas Electronics Corporation
(2) Location   1753 Shimonumabe, Nakahara-ku, Kawasaki, Kanagawa Prefecture , Japan
(3) Representative   Hisao Sakuta, Representative Director, Chairman and CEO
(4) Operations   Research, development, design, manufacture, sale and servicing of semiconductor products
(5) Capital   228.2 billion yen
(6) Established   November 1, 2002

(Started operations on April 1, 2010)

(7) Net Assets   221.8 billion yen (As of September 30, 2013)
(8) Total Assets   796.2 billion yen (As of September 30, 2013)
(9) Major Stockholders and Ownership Ratios

(As of September 30, 2013)

  Innovation Network Corporation of Japan: 69.15%

Japan Trustee Services Bank, Ltd. (Re-trust of Sumitomo Mitsui Trust Bank, Limited / NEC Corporation pension and severance payments Trust Account): 8.11%

Hitachi, Ltd.: 7.66%

Mitsubishi Electric Corporation: 6.26%

(10) Relationship with Sony Capital Ties  

There is no capital relationship between Renesas Electronics and Sony required to be referred to herein. There is no capital relationship between Renesas Electronics’ affiliates and affiliate companies and Sony’s affiliates and affiliate companies required to be referred to herein

Personal Ties  

There is no personal relationship between Renesas Electronics and Sony required to be referred to herein. There is no personal relationship between Renesas Electronics’ affiliates and affiliate companies and Sony’s affiliates and affiliate companies required to be referred to herein

Business Relationship   Renesas Electronics supplies some semiconductor products to Sony
Status as a Related Party   Not applicable
 
(1) Company Name   Sony Corporation
(2) Location   1-7-1 Konan, Minato-ku, Tokyo, Japan
(3) Representative   Kazuo Hirai

Representative Corporate Executive Officer, President and CEO

(4) Operations   Manufacture and sale of electronics products and equipment
(5) Capital   JPY 630,923 million (as of March 31, 2013)
(6) Established   May 7, 1946
(7) Net Assets   JPY 2,681,178 million (consolidated) (as of March 31, 2013) (Note)
(8) Total Assets   JPY 14,206,292 million (consolidated) (as of March 31, 2013)
(9) Major Stockholders and Ownership Ratios

(As of March 31, 2013)

  1. Moxley and Co. LLC 5.64%

2. Japan Trustee Services Bank, Ltd. (Trust Account) 5.17%

3. The Master Trust Bank of Japan, Ltd. (Trust Account) 4.69%

4. Goldman, Sachs & Co. Reg 2.30%

5. SSBT OD05 Omnibus Account – Treaty Clients 2.25%

(10)

Relationship with Renesas Electronics

Capital Ties  

There is no capital relationship between Renesas

Electronics and Sony required to be referred to herein. There is no capital relationship between Renesas Electronics’ affiliates and affiliate companies and Sony’s affiliates and affiliate companies required to be referred to herein

Personal Ties  

There is no personal relationship between Renesas

Electronics and Sony required to be referred to herein. There is no personal relationship between Renesas Electronics’ affiliates and affiliate companies and Sony’s affiliates and affiliate companies required to be referred to herein

Business Relationship   Renesas Electronics supplies some semiconductor products to Sony
Status as a Related Party   Not applicable.

(Note) Because Sony prepares its consolidated financial statements in accordance with generally accepted accounting principles in the United States, “total equity” is stated in place of “net assets”.

3. Timeline of the Asset Transfer

(1) Date of Asset Transfer Agreement: January 29, 2014

(2) Date of the Asset Transfer (planned): March 31, 2014

* This transfer is subject to the receipt of necessary regulatory approvals

4. Financial Outlook

(Renesas)

As a result of the Asset Transfer, Renesas Electronics expects to record the difference between the expected transfer price and the book value of the assets at the time of the transfer as an extraordinary loss in the third quarter of the fiscal year ending March 31, 2014. However, the amount of book value is currently being evaluated and will be disclosed once such amount is confirmed.

Renesas Electronics intends to disclose the consolidated forecasts for the third quarter of the fiscal year ending March 31, 2014 where the impact from the Asset Transfer will be included once such impact is confirmed.

(Sony)

No material impact is anticipated on Sony's consolidated financial results for the fiscal year ending March 31, 2014 as a result of the Asset Transfer.

Sony is currently evaluating its forecast of the consolidated financial results for the fiscal year ending March 31, 2014 to take into account the Asset Transfer and other factors that might affect such forecast.

In connection with the Asset Transfer, Sony today announced “Sony Establishes Yamagata Technology Center to Increase Production Capacity for CMOS Image Sensors”.

Information can be found at www.sony.net/SonyInfo/News/Press/201401/14-016E/

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 Sony Corporation

Sony Corporation is a leading manufacturer of audio, video, game, communications, key device and information technology products for the consumer and professional markets. With its music, pictures, computer entertainment and online businesses, Sony is uniquely positioned to be the leading electronics and entertainment company in the world. Sony recorded consolidated annual sales of approximately $72 billion for the fiscal year ended March 31, 2013. Sony Global Web Site: http://www.sony.net/

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
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with b...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, sha...