Hitachi and Renesas Conclude Absorption-type Company Split Agreement

Both companies, as well as Hitachi High-Technologies and Renesas Technology, also today signed a definitive agreement regarding this business transfer. This is an update to the announcement which Hitachi High-Technologies and Renesas Technology made on October 28, 2009 in the press release titled “Hitachi High-Technologies to Acquire Semiconductor Manufacturing Equipment Business from Renesas.”

The transfer method shall be an absorption-type company split with Renesas Eastern Japan Semiconductor as the splitting company and Hitachi High-Tech Instruments as the succeeding company, transferring the semiconductor back-end process manufacturing equipment business of Renesas Eastern Japan Semiconductor to Hitachi High-Tech Instruments.

Renesas Eastern Japan Semiconductor is currently charged with the development and manufacture of semiconductor back-end process manufacturing equipment, with Hitachi High-Technologies responsible for global sales of most of these products. However, both Hitachi High-Technologies and Renesas Technology have acknowledged that the integrated management of development through to manufacturing, sales and services pertaining to semiconductor back-end process manufacturing equipment is the most desirable option going forward for responding flexibly to the changing market environment and accelerating the development of new products that reflect customer needs. Furthermore, Hitachi High-Technologies aims to expand business by bringing even more superior products to market through synergies with technological and development capabilities honed by Hitachi High-Tech Instruments in the surface mount systems and semiconductor manufacturing equipment business over the years, leading to the signing of the definitive agreement with Renesas Technology. With this transfer, Hitachi High-Technologies aims to establish and strengthen its business base in the semiconductor back-end process manufacturing equipment business, where market expansion is widely anticipated. Renesas Technology, for its part, is promoting effective resource utilization to enhance its core competency, the microcontroller business, so that it can realize a more stable and stronger management base.

The effective date of the absorption-type company split is scheduled to be April 1, 2010.