Renesas Electronics to ‘streamline’ 5000 of its workforce
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Renesas Electronics has unveiled what it calls a 'three pronged business strategy' in a bid to construct a business structure resistant to market changes and to achieve a 7 to 10% compound annual growth rate in semiconductor sales. The strategy will involve optimising its business portfolios, integrating its development environments and implementing structural reforms.
With immediate effect, Renesas will 'streamline' approximately 5000 human resources by March 2013. It also plans to scale down current outsourcing of design and development to companies other than Renesas Electronics Group companies to two-thirds of the current volume by March 2013. In addition, as part of its plan to expand overseas businesses, the company will raise the number of overseas employees from 29% to 32% by March 2013.
Renesas Electronics began its business operations in April, through the integration of NEC Electronics and Renesas Technology. The new business strategy has been formed by reviewing all of the former companies' respective management resources.
The company said in a statement that it 'aggressively expand' its focus on advanced information communications such as cloud computing, smart grid and wireless modem technologies and digital consumer electronics.
It also intends to launch up to 1000 products specifically for the Chinese market, particularly with mcus for smart meters. As a result, the Renesas expects to expand its sales ratio in the Chinese market by approximately 10% by March 2013.
The company expects to generate 40billion yen by March 2013 through merger synergies. This will involve integrating development environments and technology platforms, material procurement, and various infrastructures.
Renesas says that by implementing structural reforms it will achieve cost reductions of approximately 70bn yen by March 2013. The company plans to use outside foundries on all of its 28nm and smaller geometry semiconductor products. It has established 300mm wafer lines at Naka and Tsuruoka plant as manufacturing facilities for the company's basic products, especially for SoCs up to 40nm.
It also plans to construct a 'fab network' including outside foundries with the aim to improve manufacturing efficiency by restraining large scale investments to increase in-house manufacturing capacity.
