Media Contacts:
Japan
Kyoko Okamoto
Renesas Electronics Corporation
+ 81-3-6756-5555
kyoko.okamoto.sx@renesas.com
Americas
Denise Garibaldi
Renesas Electronics America Inc.
+ 1 (408) 588-6620
denise.garibaldi@renesas.com
America
Raj Johal
Telefunken Semiconductors
+ 1(408) 538-3800
rjohal@telefunkensemi.com
Renesas Electronics to Sell its U.S. Semiconductor Wafer Fabrication Facility to
TELEFUNKEN Semiconductors
TOKYO, Japan, and Heilbronn, Germany, March 31, 2011—Renesas Electronics
Corporation (TSE: 6723), a premier supplier of advanced semiconductor solutions, and
TELEFUNKEN Semiconductors GmbH & Co. KG, an automotive-qualified, mixed-signal,
high-voltage (HV) power management and SOI-based manufacturer, today announced that
they have signed an agreement under which Renesas Electronics America Inc. will sell its
semiconductor wafer fabrication facility in Roseville, California, to TELEFUNKEN
Semiconductors International LLC, a company that includes of TELEFUNKEN
Semiconductors GmbH. The sale price is approximately 53 million U.S. dollars, and the closing
for the sale is planned for May 2, 2011. Wafra Capital Partners L.P. and Somerset Capital Group
Ltd. helped TELEFUNKEN finance and facilitate the transaction and ATREG Inc. advised
Renesas throughout the transaction.
As part of the strategies decided through its 100-Day Project announced on July 29,
2010, Renesas Electronics has been considering and implementing various measures to
improve manufacturing efficiency by promoting larger wafers, finer process node, and
production concentration. In line with these measures, the company decided to sell Renesas
Electronics America’s facility in Roseville, California, to TELEFUNKEN Semiconductors
International, which has been searching for a new manufacturing facility to expand its
semiconductor business.
TELEFUNKEN Semiconductors International intends to utilize the 200-millimeter (mm),
eight-inch line at the Roseville factory to manufacture its own analog/mixed-signal, HV
products and the products for its strategic foundry partners. TELEFUNKEN Semiconductors
International also will enter into a supply agreement with Renesas Electronics for
manufacturing services at the Roseville factory. Under this agreement, TELEFUNKEN
Semiconductors International will focus on Renesas Electronics’ current customers without
interruption for the same high-quality level of production and service at the Roseville facility.
Renesas Electronics remains fully committed to meeting customers’ requirements through
its Quality Assurance Center in Roseville to continue support of customers in the North
American and European markets.
Renesas to Sell its U.S. Eight-Inch Semiconductor Wafer Fabrication Facility to TELEFUNKEN
Semiconductors
Note: Refer to the addendum for an overview of the sale agreement of the Roseville factory.
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.
About TELEFUNKEN Semiconductors GmbH & Co. KG
TELEFUNKEN Semiconductors GmbH & Co. KG is a leading manufacturer of advanced
Bi-CMOS, BCD, SiGe and SOI technologies, with its own product families in the fast-growing
power management and interface segments. It also manufactures products for its strategic
foundry partners worldwide. TELEFUNKEN Semiconductors has an automotive-qualified
manufacturing facility in Heilbronn, Germany. More information can be found at
www.telefunkensemi.com.
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Renesas to Sell its U.S. Eight-Inch Semiconductor Wafer Fabrication Facility to TELEFUNKEN
Semiconductors
Addendum
Overview of the Agreement for the Sale of the Renesas Electronics America Wafer Fab
1. Overview of the Sales Agreement
1.1 Assets to be transferred
Approximately 590 employees, manufacturing equipment, land and facilities at
Renesas Electronics America’s Roseville factory
(Note) The Roseville factory is positioned as one of Renesas Electronics America’s
divisions; therefore, the financial results of the Roseville factory will not be disclosed.
1.2 Sale price and method of payment
The sale price is approximately 53 million U.S. dollars and will be paid in cash.
2.
Impact on Renesas Electronics’ Financials Forecasts
As a result of the transaction, an extraordinary loss of approximately 1.4 billion yen is
expected to be recorded. However, Renesas Electronics will not change its consolidated
forecast for the current fiscal year announced on January 28, 2011.
3.
Overview of Renesas Electronics America Inc.
Representative:
Daniel Mahoney, President & CEO
Location:
Santa Clara, California, U.S.A.
Established:
February 1967
Operations:
Sales, design and front-end manufacturing of
semiconductor devices
Employees:
Approximately 435, excluding manufacturing
(As of February 28, 2011)
4.
5.
Overview of Renesas Electronics America’s Roseville Factory
Location:
Roseville, California, U.S.A.
Representative:
Gabe Kim, Vice President of Operations
Operations:
Front-end manufacturing of semiconductor devices
Employees:
Approximately 620 (As of February 28, 2011)
Capacity:
5,700 8-inch wafers per month
Overview of TELEFUNKEN Semiconductors GmbH & Co. KG
Location:
Heilbronn, Germany
Representative:
Subba Rao Pinamaneni, President & CEO
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Renesas to Sell its U.S. Eight-Inch Semiconductor Wafer Fabrication Facility to TELEFUNKEN
Semiconductors
Operations:
Sales, design, R&D, manufacturing of semiconductor
devices
Relationship with Renesas Electronics: None
6.
Overview of TELEFUNKEN Semiconductors International LLC
Location:
San Jose, California, U.S.A.
Representative:
Subba Rao Pinamaneni, President & CEO
Operations:
Sales, design, R&D and manufacturing of semiconductor
devices
Relationship with Renesas Electronics: None
Note: The purchasing entity in this agreement is TELEFUNKEN Semiconductors
International
LLC, a group company of TELEFUNKEN Semiconductors GmbH
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