Renesas Electronics Corporation (TSE:6723, “Renesas”), a supplier of advanced semiconductor solutions, today announced that it has resolved at the Meeting of Board of Directors held on October 31, 2018 to consolidate its wholly-owned subsidiary Renesas Semiconductor Package & Test Solutions Co, Ltd. (“Renesas Semiconductor Package & Test Solutions”) through an absorption-type merger (“Merger”).Certain disclosure items and details have been omitted due to the Merger being an absorption-type merger of a wholly-owned subsidiary.
Purpose of Merger
With an aim to build a business structure that can generate consistent profitability, Renesas reorganized its domestic manufacturing subsidiaries and business units in April 2014 to simplify and boost the efficiency of its organization and these efforts have steadily delivered tangible results. Nevertheless, Renesas must build a flexible production system based on quick decision-making to be able to respond to the rapid changes in the semiconductor industry. Renesas therefore decided to consolidate Renesas Semiconductor Package & Test Solutions, which is responsible overall for the back-end production business, effective January 1, 2019, to further simplify the organization and decision-making process within the semiconductor production business and enable rapid and consistent decision-making. The Merger will enable Renesas to build a manufacturing structure optimized for responding to changes in the business environment and accelerate further growth.