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Renesas Plans to Sell German Fab to Silicon Foundry Holding

September 24, 2008

Renesas Technology Corp., one of the world’s leading semiconductor solution providers, is planning a sale of its production facility in Germany – Renesas Semiconductor Europe (Landshut) GmbH (RSEL) – to Silicon Foundry Holding (SFH), a newly established Germany-based company specializing in semiconductor foundry services. The final agreement is expected to be concluded in the near future.

RSEL has been present in Landshut for 28 years and has evolved to produce the highest possible quality of secure microcontroller wafers for smart card applications with 0.35 um and 0.18 um processes. However, in a fast developing market, the trend evolves down to ever-smaller microchips, which Renesas cannot produce with high volume at small facilities like RSEL. Consequently, this reduces the load at RSEL.

Renesas has examined the future of RSEL carefully as part of global activities seeking to optimize its production resources worldwide, in parallel with efforts to cut down costs and raise the operating capacity. Considering the economic rationale thoroughly, Renesas has decided to concentrate its wafer fabrication investments in its bigger production facilities to exploit economies of scale and remain competitive.

SFH is a new company established by two RSEL managers, specializing in semiconductor foundry services especially for the European market. The company has made a business proposal which provides a positive future to RSEL with a new strategy. “Having evaluated all possible options for the future of RSEL in detail, the business plan of SFH, focusing on analog mixed signal production to support local markets including lower volumes, will be a positive solution to continue RSEL’s business operations,” says Satoru Ito, chairman and CEO of Renesas Technology Corp.

The detailed agreement is still in negotiation, the finalization is expected in the near future. More information will be disclosed as soon as the deal is finally closed.

About Renesas Technology Corp.

Renesas Technology Corp. is one of the world’s leading semiconductor system solutions providers for mobile, automotive and PC/AV (Audio Visual) markets and the world’s No.1 supplier of microcontrollers. It is also a leading provider of LCD Driver ICs, Smart Card microcontrollers, RF-ICs, High Power Amplifiers, Mixed Signal ICs, System-on-Chip (SoC), System-in-Package (SiP) and more. Established in 2003 as a joint venture between Hitachi, Ltd. (TOKYO:6501) (NYSE:HIT) and Mitsubishi Electric Corporation (TOKYO:6503), Renesas Technology achieved consolidated revenue of 951 billion JPY in FY2007 (end of March 2008). Renesas Technology is based in Tokyo, Japan and has a global network of manufacturing, design and sales operations in 17 countries with 26,800 employees worldwide. For further information, please visit http://www.renesas.com.

About Renesas Semiconductor Europe (Landshut) GmbH

Renesas Semiconductor Europe (Landshut) GmbH (RSEL) currently mainly produces secure microcontroller wafers for smart card applications with 0.35 um and 0.18 um processes. The production site based in Germany employs 500 staff members.

About Silicon Foundry Holding

Silicon Foundry Holding (SFH) is held and managed by former RSEL managers Michael Lehnert and Gerhard Spitzlsperger together with Hans-Martin Dudenhausen and will act as a local foundry specialized in analog mixed signal production. Based in Europe, SFH is in a good position to support local markets including lower volumes, providing a flexible approach to customer requirements.




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