Renesas Electronics Corporation, a supplier of advanced semiconductor solutions, today announced that it has decided on a policy of consolidation for the Kochi Factory (Konan, Kochi Prefecture) of its wholly owned subsidiary, Renesas Semiconductor Manufacturing Co., Ltd. Under this consolidation policy, the factory is to be closed within the next two to three years, and production of the products currently being manufactured there will be transferred to other facilities within the Renesas Group or, in the case of some products, phased out. In the news release, Renesas Electronics Shows Direction of Renesas Group, announced on August 2, 2013, Renesas Electronics indicated its intention with regard to the Kochi Factory to continue production, downsizing to be appropriate scale. However, after reexamining the present production load situation and the likely future production load, Renesas has concluded that the production load will be less than was initially anticipated and that maintaining the profitability of the Kochi Factory will be problematic.
Efforts were made to boost production efficiency at the Kochi Factory or to find another company willing to purchase it, however, at present there appears to be no way to compensate for the reduction in the production load. Therefore, Renesas has decided on a policy of consolidation for the Kochi Factory.
Negotiations are planned between labor and management regarding the treatment of the factory’s employees during and after the consolidation, though every effort will be made to ensure continued employment of the affected personnel, with the assistance of Kochi Prefecture.
In addition, with regard to the utilization of the Kochi Factory following the consolidation, Renesas will endeavor to secure a purchaser for the facility with the assistance of Kochi Prefecture.