Renesas to Stop Investing in Flash Memory: Report

By Kyodo News International, Tokyo

Dec. 8–TOKYO — Renesas Technology Corp. intends to freeze new investment in large-capacity flash memory chips and channel its resources into other types of semiconductors, the Nihon Keizai Shimbun reported Thursday.

Since the firm’s sales of the products will decline, the decision is expected to lead to Renesas bowing out of the large-capacity flash memory chip business in two to three years, the report said.

The semiconductor joint venture of Hitachi Ltd. and Mitsubishi Electric Corp. will likely focus on products in which it holds high market shares, such as microcontrollers and system chips, in order to boost profits, it said.

Instead of making a big capital investment and attempting to narrow the gap with the major players, Renesas decided to stop investment in flash memory chips and gradually reduce production. It intends to maintain its tie-up with Powerchip Semiconductor Corp., a Taiwanese firm to which it subcontracts production of some flash memory chips, the report said.

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