Renesas Electronics Announces the Successful Implementation of Measures to Ensure a Robust and Profitable Structure
Financial Agreements Enable Acceleration of Business Reforms to Achieve Goals for Profitability
TOKYO, Japan, September 28, 2012 — Renesas Electronics Corporation (TSE: 6723, hereinafter “Renesas”), a premier supplier of advanced semiconductor solutions, today announced the execution of a guarantee deposits agreement with NEC Corporation (hereinafter “NEC”), of loan agreements with Hitachi, Ltd. (hereinafter “Hitachi”) and Mitsubishi Electric Corporation (hereinafter “Mitsubishi Electric”), and a syndicate loan agreement with Renesas' main financing banks to implement financing totaling 97 billion yen. These agreements now secure the funds for the structural reform of production sites and the early retirement incentive program as announced by Renesas on July 3, 2012. This financing will become effective October 1, 2012.
With these financial arrangements in place, Renesas will accelerate business, financial and product offering reforms to reach the goals of profitability, a reduced fixed-cost base and an ability to respond to market changes flexibly, in line with the July 3, 2012 announcement. Renesas intends to be a company that consistently achieves an operating profit ratio of more than 10 percent.
1. Overview of the financing by the major shareholders
Shareholders | Amount | Execution Date | Purpose |
---|---|---|---|
NEC | 49.5 billion yen | October 1, 2012 | To fund business reform |
Hitachi | |||
Mitsubishi Electric |
*Funding from NEC is a guarantee deposit for stable product supply.
2. Overview of the syndicate loan by the main financing banks
Shareholders | Amount | Execution Date | Purpose |
---|---|---|---|
The Bank of Tokyo-Mitsubishi UFJ, Ltd. | 47.5 billion yen | October 1, 2012 | To fund business reform |
Mizuho Corporate Bank, Ltd. | |||
Sumitomo Mitsui Trust Bank, Limited | |||
Mitsubishi UFJ Trust and Banking Corporation |
3. Effect on business performance
The impact on business performance is currently being reviewed, should any correction to the sales estimate be necessary, Renesas will make a prompt disclosure.
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723), the world's number one supplier of microcontrollers, is a premier supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad range of analog and power devices. Business operations began as Renesas Electronics in April 2010 through the integration of NEC Electronics Corporation (TSE:6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics has subsidiaries in 20 countries worldwide. More information can be found at www.renesas.com.
|
Related News
- Renesas Electronics Announces "Growth Strategies and Structural Reform Measures" to Construct Business Structure Resistant to Market Changes
- Renesas Electronics Announces Development of the Basic Structure for Embedded DRAM with High Compatibility with Standard CMOS Logic Circuits
- Renesas Electronics Strengthens its Microcontroller Business through Integration of the Development/Manufacturing Structure
- NEC Electronics and Renesas Announce the New Organizational Structure and Personnel Changes Following Merger
- Renesas to Acquire PCB Design Software Leader Altium to Make Electronics Design Accessible to Broader Market and Accelerate Innovation
Breaking News
- Cadence Announces Most Comprehensive True Hybrid Cloud Solution to Provide Seamless Data Access and Management
- Dolphin Design expands GoAsic partnership to enhance the semiconductor Industry's Supply Chain
- Cadence Collaborates with MemVerge to Increase Resiliency and Cost-Optimization of Long-Running High-Memory EDA Jobs on AWS Spot Instances
- M31 Successfully Validates 5nm IP Solution to Empower Global AI Applications
- Cadence Unveils Palladium Z3 and Protium X3 Systems to Usher in a New Era of Accelerated Verification, Software Development and Digital Twins
Most Popular
- Rivos Raises More Than $250M Targeting Data Analytics and Generative AI Markets
- Semiconductor Capacity Is Up, But Mind the Talent Gap
- Zhuhai Chuangfeixin: OTP IP Based on 90nm CMOS Image Sensor Process Technology Successfully Mass Production
- CMC Microsystems and AIoT Canada Sign Memorandum of Understanding to support IoT and semiconductor ecosystem growth in Canada
- Microchip Technology Acquires Neuronix AI Labs
E-mail This Article | Printer-Friendly Page |