Renesas combines China sales, technical subsidiaries

By reducing the number of the sales and technical support organizations in China from four to two, Renesas believes its actions will create a more efficient business system with unified sales and technical support operations.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 7/1/2008

Renesas Technology Corp today announced plans to reorganize its organization in China by merging sales and technical support subsidiaries.

Operations under the new system will start this month, the Tokyo-based MCU company said.

Under the new organization, the sales subsidiary in Shanghai, Renesas Technology (Shanghai) Co Ltd, and technical support subsidiary in Beijing, Renesas System Solutions (Beijing) Co Ltd will be combined. At the same time, the sales subsidiary in Hong Kong, Renesas Technology Hong Kong Ltd, and technical support subsidiary in Hong Kong, Renesas System Solutions Hong Kong Ltd, will also be combined.

By reducing the number of the sales and technical support organizations in China from four to two, Renesas believes its actions will create a more efficient business system with unified sales and technical support operations.

To be sure, this is not the first time Renesas has reorganized its China business. In January 2007, Renesas reduced the number of sales and technical support subsidiaries in China and Hong Kong from six to four and appointed Managing Officer Masahiro Yamamura as CEO of all of them. Under Yamamura’s administration, the sales and technical support subsidiaries remained separate organizations. Renesas said those offices in mainland China and Hong Kong are being consolidated to “further simplify the administrative hierarchy and enable quicker response to customers.”

Looking to its future plans for China, Renesas said it will “redouble” its efforts to develop and supply products focused on the Chinese market under the new organization. While announcing no specific details on its plans, the company said it will expand its presence in China by cultivating new businesses locally, as well as supporting transfer business from other regions such as Europe, North America, and Japan.

In a separate China move at the end of Q1, Renesas announced plans to invest $39.9 million to add a new building at its back-end process plant, Renesas Semiconductor Beijing Co (RSB), to increase capacity for MCU production there.