9/8/2004 - Mitsumi Electric Co.,Ltd. and Renesas Technology Corp. have announced that they reached a basic agreement concerning the business transfer of Chitose factory, comprising a front-end line belonging to Renesas Northern Japan Semiconductor, Inc.(hereinafter Kitasemi), a wholly owned affiliated company of Renesas Technology. Both companies will take necessary procedures for the business transfer in December 2004.
Chitose factory of Kitasemi operates as a Renesas Technology front-end line producing microcontrollers using 6-inch wafers with 0.35 to 2.0Ám design rules. However, in the ubiquitous network society field in which Renesas Technology focuses, demand for mature-process products manufactured at Chitose is expected to fall off as product processes become finer, and the effective use of the line had become an issue.
Meanwhile, although analog products are currently the majority of Mitsumi Electric's semiconductor business, the company is moving toward the development of analog/digital combined ICs, and the use of processes provided at Chitose will make it possible to accelerate and expand the development of new products. In addition, foundry business is considered to be an important part of the company's business, and an enlargement of the production scale and an improvement of production technology are urgent tasks in achieving a flexible business expansion.
The ideas of the two companies are in accord on this matter, and they have reached a basic agreement. After the transfer, Chitose will continue to produce foundry products for Kitasemi in addition to for Renesas Technology. With regard to the deployment of employees currently working at Chitose, measures such as a temporary secondment from Kitasemi to Mitsumi Electric will be taken following future consultations with due consideration to labor-management relations. Tsugaru, Hakodate and Yonezawa will continue to be run by Kitasemi as at present.
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