Mitsubishi to take ownership of Renesas fab
The move will see Mitsubishi Electric increase production capability for 6-inch wafers while adding capability for 8-inch wafers.
By Suzanne Deffree, Managing Editor, News -- EDN, January 31, 2008
Mitsubishi Electric Corp is in the process of obtaining buildings and manufacturing facilities from Renesas Technology Corp as it sharpens its focus on power devices and the inverter controller equipment market.
The deal is the latest in a series of back-and-forth business agreements between the two Japan-based companies. In April 2003, Mitsubishi transferred its system LSI and system memory businesses to Renesas. Renesas, in itself, was established as a joint venture between Mitsubishi and Hitachi Ltd that same year.
Mitsubishi currently concentrates its resources on power and high-frequency optical devices, and said it has been trying to increase its wafer production capabilities to boost business. Specifically, Mitsubishi has been working to increase the production capability for 6-inch wafers at its existing factory, the Kumamoto Factory of Power Device Works, also located in Kumamoto. The company also has been seeking to manufacture its products using 8-inch wafers to further increase its production capability.
Meanwhile, Renesas has been concentrated its resources on microcontrollers, system solutions, and standard products since it decided to exit flash memory in December 2005. Since then, Renesas’ Kumamoto factory, which was used primarily for flash production, has been operating under its capacity, the company said, further noting that maximizing its value has been a challenge.
The companies reported that the Renesas Kumamoto factory, which is located on the same grounds as Mitsubishi Electric’s Kumamoto Factory of Power Device Works, has already been commissioned to produce Mitsubishi Electric’s power devices using 8-inch wafers.
“Given the close proximity of the location, technical alignment and economic value, Mitsubishi Electric concluded that it would be best to acquire these facilities from Renesas. For Renesas, transferring the factory to Mitsubishi Electric will improve their manufacturing efficiency in the focused segments,” the joint company statement reads.
No financial details of the deal were disclosed. Mitsubishi will officially take ownership of the factory on April 1.
