Murata Manufacturing and Renesas Electronics Sign Basic Agreement to Transfer High-Power Amplifier Business to Murata Manufacturing

Based on the basic agreement signed today, the companies plan to conclude a definitive agreement of this business transfer, which is scheduled to be completed by January 1, 2012.

Details of the business transfer are under discussion and Murata Manufacturing and Renesas Electronics intend to disclose updates when confirmed information is available.

1. Background and goals of business transfer
With the growing demand for smartphones all over the world and the expansion of the low-end models in the developing countries, the market of mobile phones, which is the major user of power amplifiers, is experiencing a growing trend toward one-stop module and platform solutions that integrate basic communication functions in a device. In particular, demand is growing for modules that incorporate HPAs with radio frequency (RF) components, such as filters and switches.
In light of these changing business environments, while maintaining the world-leading market share of front-end modules (FEMs), Murata Manufacturing has been examining measures to strengthen its power amplifier technology in order to promote the integration of front-end modules including power amplifiers and to expand its business.

Renesas Electronics has been supplying power amplifier modules to the mobile handset makers without RF filters and switches. To further strengthen its business structure, the company has been studying ways to respond to the demand for a one-stop module that incorporates an FEM.
Murata Manufacturing and Renesas Electronics have been discussing the possibility of collaborating on a complementary supply of parts for communication devices. However, to respond to the changing business circumstances rapidly, the companies agreed and today signed a basic agreement in which Murata Manufacturing will acquire Renesas Electronics’ power amplifier business and its manufacturing site, the Nagano Device Division of Renesas Eastern Japan Semiconductor.
Murata Manufacturing intends to further expand its business through integrated technologies of its world-leading FEMs and market-proven PAs.

2. Outline of business transfer
Renesas Electronics will transfer its HPA business and the Nagano Device Division of Renesas Eastern Japan Semiconductor, including its contract production business to Murata Manufacturing.

3. Schedule moving forward
- End of October, 2011: Sign a definitive agreement for the business transfer (scheduled)
- January 1, 2012: Date of business transfer (scheduled)