Renesas Electronics Corporation, a supplier of advanced semiconductor solutions for automotive applications, announced its policy to close and consolidate in approximately two to three years the Yamaguchi Factory (Ube, Yamaguchi Prefecture) and a portion (the silicon production line) of the Shiga Factory (Otsu, Shiga Prefecture), respectively, of its wholly owned subsidiary Renesas Semiconductor Manufacturing Co., Ltd. (“Renesas Semiconductor Manufacturing”).
The products currently manufactured on the production lines affected by this decision are scheduled to either be discontinued or to have production transferred to other facilities operated by the Renesas Group.
With regard to the 6-inch wafer fabrication sites of Renesas Semiconductor Manufacturing, Renesas stated on May 11, 2016 in the explanatory material for the FY2016/03 financial announcement entitled “Looking Back on the ‘Reform Plan,’” that “After recovery efforts from the 2016 Kumamoto Earthquake settles down, Renesas will investigate every possible alternative, including realignment, for the Group’s 6-inch production lines.” This investigation has proceeded with the goal of establishing a manufacturing structure optimised for Renesas’ future business environment.
As a result of this investigation it was determined that it would be difficult to continue a rational and stable supply of products through the operation of the Yamaguchi Factory and a portion of the Shiga Factory (the silicon production line), and a policy has been decided to close the former and consolidate the latter in approximately two to three years.
Moving forward, Renesas will make every effort to ensure continued employment of the employees affected by the present decision. As for the utilisation of the Yamaguchi Factory and portions of the Shiga Factory following their closure and consolidation, Renesas will endeavor to secure purchasers.