Renesas & NEC Electronics Merged to Fight off Competition
Renesas president Yasushi Akao issued a letter to shareholders outlining his plans for the newly merged Renesas and NEC Electronics. In his letter Mr. Akao said they will focus on three key areas of technology; microcontrollers, SoC solutions, and analog & power devices as its core product areas. He also said he hope to attain operating for profit for fiscal year ending March 2011, and net profits for fiscal year ending March 2012.
Renesas Electronics Corporation President Yasushi Akao Dear Shareholders and Investors, In April 2010, Renesas Electronics Corporation began its new start as a merged company between NEC Electronics and Renesas Technology.
In light of fierce global competition in the changing semiconductor market, it is imperative for the future growth of the new Renesas Electronics to attentively respond to changes in the market condition and provide semiconductor solutions that address customer demands.
Renesas Electronics will focus on the three product areas; microcontrollers, SoC solutions, and analog & power devices. To expand sales and profits, Renesas Electronics will further enhance its business efficiency, leverage merger synergies, and accelerate global business operations.
In particular, Renesas Electronics will leverage its world-leading microcontroller business to create strong products through synergies among other product areas. Furthermore, we will further reinforce our solution businesses, which provide a one-stop solution service across all product areas to attain sustainable sales growth. On the other hand, we will strengthen marketing and product development for a growing green market, such as Smart Grid, eco-friendly devices and green vehicles, and for emerging markets including China and India to expand global business.
On the business management front, we will continue to pursue structural reform measures that NEC Electronics and Renesas Technology have both been working on prior to the merger, aiming to establish a powerful dedicated semiconductor company that will beat the changing market condition.
For the fiscal year ending March 2011, Renesas Electronics aims to attain operating profit. It also plans to execute various restructuring measures necessary to establish a strong business foundation. The company aims to attain net profits for the fiscal year ending March 2012, and to achieve double-digit operating margin in near term.
It is our utmost goal to increase corporate value through enhanced customer satisfaction.. I ask our shareholders and investors for your kind support and guidance as we begin the exciting year as Renesas Electronics.
Renesas Electronics Corporation President