Renesas Electronics Announces its Plan to Transfer Factory of Subsidiary to Fuji Electric

To improve in-house, front-end manufacturing efficiency by promoting larger wafers, and miniaturization, Renesas has been reviewing various measures for its manufacturing sites. As part of this ongoing review process, an agreement has been reached to transfer the Tsugaru Factory to Fuji Electric, which had been considering a new manufacturing facility to further expand the supply capacity of its power semiconductor business.

Renesas Northern Japan Semiconductor will transfer its business operation of the Tsugaru Factory to its wholly owned subsidiary, which is scheduled to be established (the “new company”) through an absorption-type separation (Kyushu-bunkatsu) effective on the transfer completion date, July 1, 2012. Upon this absorption-type separation, all of the new shares of common stock for the new company will be allocated to Fuji Electric.

Additionally, Renesas Electronics, Renesas Northern Japan Semiconductor, the new company, and Fuji Electric will conclude an agreement whereby the new company will manufacture under contract Renesas Electronics and Renesas Northern Japan Semiconductor products currently being produced at the Tsugaru Factory. Those customers purchasing such products will be assured an uninterrupted supply following the transfer of the Tsugaru Factory, with Renesas Electronics and Renesas Northern Japan Semiconductor continuing to provide products of the same quality and via the same sales channels as before.