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Renesas shifts production at SG site to J-Devices

Posted: 25 Mar 2014  Print Version  Bookmark and Share

Keywords:manufacturing  contract production  outsourcing 

Renesas Electronics Corporation confirmed that it has signed a definitive agreement to transfer part of its manufacturing facility at Renesas Semiconductor Singapore (RSS) to J-Devices Corporation. In line with this, all products currently manufactured by RSS will be transferred to J-Devices and Renesas Semiconductor KL.

EE Times Asia contacted Renesas to determine what particular products will be produced by J-Devices as part of this outsourcing agreement and was told that information on specific product distribution is not available as of press time. However, Renesas emphasised that supply to customers will not be affected.

Last year, Renesas transferred three of its back-end manufacturing facilities in Japan to J-Devices, which has an established track record in automotive products. Now, from the viewpoint of the future expansion of the manufacturing business in Singapore and efficient utilisation of overseas manufacturing sites, the decision to move equipment owned by RSS to J-Devices has been made. The transfer is projected to be completed in the fiscal year ending March 31, 2016 while contract production is expected to begin in the second half of that same fiscal year.

Renesas has begun negotiations with the local labour union based on its policy to terminate production operation of RSS by 2016. Upon termination, 720 employees will be dismissed, Renesas confirmed to EE Times Asia.

Earlier this year, Renesas agreed to hand over the 12-inch front-end wafer fabrication line at its Tsuroka facility to Sony Semiconductor Corporation as part of the company's efforts to strengthen its financial base by realigning manufacturing sites (see Renesas to transfer wafer fab line to Sony).





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