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Renesas Electronics was originally known as Renesas Technology when the company was established in 2002. The company is one of the leading suppliers of semiconductor equipment across the globe. In the early 2000s, Renesas was the sixth-largest semiconductor company in the entire world. There are many semiconductor companies that were established in the past 100 years that either ended up merging with other companies or spinning off some of their divisions. Renesas Electronics was also a product of the merger between the semiconductor units of Hitachi and Mitsubishi. The business of dynamic random access memory was kept separated in the case of both companies.

About Renesas Electronics

Renesas Electronics Corporation is based in Tokyo, Japan. The company started operating as Renesas Electronics in 2010 after it integrated with NEC Electronics. Renesas is currently a global leader as a provider of complete semiconductor solutions which include microcontrollers, power, SoC products, and analog. The products developed by Renesas are extensively used in home electronics, industrial equipment, the automotive industry, etc. The main four growth segments of the company are automotive, industrial, infrastructure, and IoT so that they can intelligently deliver solutions people use in their day-to-day lives.

History Of The Company

Renesas Technology became official in April 2003 as the non-DRAM joint venture of Hitachi and Mitsubishi. Hitachi owned 55 percent of the joint company while Mitshubhi owned the rest of it. In 2010, when NEC Electronics merged with Renesas Technology, the DRAM business was kept separate. And, the non-DRAM chip business of these three companies became a part of Elpida Memory which came under the acquisition of Micron Technology. In 2010, when Renesas Technology merged with NEC Electronics, the joint entity became the fourth largest semiconductor company in the world in terms of revenue generated.

After Renesas Technology became Renesas Electronics, the same year Renesas Mobile Corporation was formed. This new unit was created by merging the Mobile Multimedia Business Unit of Renesas and the Nokia Wireless Modem Business Unit (which was acquired by Renesas). Only after a year of new mergers and a big acquisition, the company suffered heavily in 2011 due to the Tohoku earthquake and tsunami, and flooding in Thailand.

After the calamity, in 2012 Renesas decided to restructure the entire organization from manufacturing to sales in all 20 countries. The aim was to create an optimized business structure and increase profit. Renesas received investment from INCJ and other key clients of the company. By 2013, the company was able to raise $130 billion in capital and used it for several developmental purposes from plant improvements to making acquisitions.

Operations And Acquisitions

In 2013, a major part of the Renesas Mobile Communication was acquired by Broadcom and after the allotment of third-party shares, INCJ became the largest shareholder of the company. The company focussed exclusively on company restructuring soon after Renesas Electronics was formed. So, in the first three years, there was more or less no profit in the business. In 2014, the company recorded its first-ever profit and started operating as Renesas Electronics Corporation. The same year, the company decided to withdraw from the 4G wireless business which resulted in the consolidation of Renesas Mobile Communication.

Soon, the company also sold its display driver unit to Synaptics. In 2016, Renesas made a huge acquisition for $3.2 billion and the name of the company is Intersil. The deal was successfully closed in 2017. Renesas eventually entered the market of the self-driving car concept as it is one of the most demanding technologies in the 21st century. In 2018, Renesas acquired Integrated Device Technology for $6.5 billion and its latest acquisition is Dialog Semiconductor.

Hidetoshi Shibata – CEO of Renesas Electronics

Hidetoshi Shibata is the current CEO and President of Renesas Electronics. He completed his education from the University of Tokyo followed by Harvard Business School. His career started with a job in Central Japan Railway and he was also the executive managing director at INCJ. Hidetoshi joined Renesas in 2013 as the executive vice president and CFO of the company.