Completing a merger transaction between the former NEC Electronics Corp. and Renesas Technology Corp., the newly established Renesas Electronics Corp. has announced that it had commenced business operations.
NEC Electronics, semiconductor manufacturing division of NEC, and Renesas, a joint venture between Hitachi and Mitsubishi Electric, agreed almost a year ago to enter into negotiations to integrate business operations at NEC Electronics and Renesas.
Renesas Electronics will focus on three areas of technology expertise, including microcontrollers, SoC solutions, and analog & power devices. The company aims to generate synergies to establish a strong new semiconductor company that is capable of consistently achieving high earnings in order to withstand changing semiconductor market conditions. In addition, Renesas Electronics will leverage its resources generated through streamlined operations and focus on expanding businesses in the global market.
Upon approvals from the Renesas Electronics board of directors held on Thursday, Junshi Yamaguchi became the chairman and Yasushi Akao became the President of the board of directors of Renesas Electronics. Renesas Electronics also announced that the company issued shares of its common stock to NEC Corp. Hitachi and Mitsubishi Electric Corp. in exchange for an aggregate of approximately ¥134.6 billion ($1.434 billion).
“Harnessing our collective expertise in new technologies, Renesas Electronics Corporation contributes to a world, where people and the planet prosper in harmony by realizing our vision and building our future,” a statement by the newly formed company reads.