Renesas Electronics to Withdraw from the Microwave Semiconductor Device Business

Renesas has been working to boost the performance of the compound device business by developing new products while implementing various measures including reducing manufacturing cost and promoting development efficiency.

Nevertheless, among Renesas’ compound device business it is anticipated that moving forward it will become increasingly difficult for Renesas to maintain profitability in the microwave semiconductor device segment due to factors such as shrinking size of the market as a result of the incorporation of peripheral component functionality into system-on-chip (SoC) devices as well as falling prices caused by the emergence of competing device manufacturers, particularly in Taiwan.

On the other hand, aside from microwave semiconductor devices, the optoelectronics segment of the compound device business is showing improved business performance due to the effects of manufacturing-related structural reforms and continuing strong market growth.

In light of this situation, as a measure to further strengthen the compound device business, Renesas intends to withdraw from the microwave semiconductor device business in order to focus on optoelectronics devices.

With regard to the optoelectronics device segment Renesas will continue to focus on highly reliable photocouplers for industrial applications while expanding its business by accelerating development of high-speed laser diodes and photodiodes for optical communication applications to accommodate the rapidly growing data transfer capacity required by data centers and base stations due to factors such as the popularization of smartphones. In addition, Renesas will continue to work on its Business Continuity Management (BCM) to maintain its system for ensuring consistent and stable supply of products.

Renesas will discontinue development and production of microwave semiconductor devices.

• Renesas no longer plans to develop microwave semiconductor devices.
• Renesas plans to discontinue production and supply of microwave semiconductor devices already in mass production within approximately two years, following consultation with customers.

The withdrawal from the microwave semiconductor device business will not have a material impact on Renesas’ consolidated financial results for the first quarter of the fiscal year ending December 31, 2016.