Renesas Electronics to spin off Mobile Multimedia SoC business
1 min read
Renesas Electronics has announced it is to spin off its Mobile Multimedia SoC business division and transfer it to a new consolidated subsidiary, Renesas Mobile Corporation. The move will be made through an absorption type separation and effective from December 1st 2010.
The spin off of the division, which offers SoC products for mobile devices and car navigation systems, will be followed by the purchase of the wireless modem business of Nokia and its assets of the wireless modem business will also be transferred to Renesas Mobile. The deal is scheduled to be completed on November 30th, after which Renesas Electronics will inherit the personnel from Nokia's wireless modem business located in UK, Finland, India, Denmark, China, and other countries.
New local subsidiaries of Renesas Mobile will be established in Finland, India, and China, and the employees will be transferred to these local subsidiaries.
In addition to these regions, Renesas Design France, currently Renesas Electronics' SoC design company, will also become a subsidiary of Renesas Mobile. As a result, over 75% of the 1800 total employees of Renesas Mobile will be based outside Japan.
Renesas Mobile will ship its first sample of modem chipset solutions incorporating LTE/HSPA+ modems at the end of this year.
By expanding its overseas business with a focus on mobile multimedia and launch of Renesas Mobile, Renesas Electronics expects to double the sales of mobile multimedia SoC business by March 2013 from the current 90billion yen achieved in 2009.
