August 31, 2006 – Renesas Technology Corp. plans to add a new building to its backend process manufacturing subsidiary, to boost production capacity and consolidate some operations.

Construction of the new facility at the Kumamoto plant of Renesas Kyushu Semiconductor Corp., scheduled to be completed in December, will enhance assembly and testing operations allowing accelerated production of products including microcontrollers, mixed-signal devices, and discrete devices. In conjunction, operations of Renesas Kyushu Semiconductor’s Fukuoka plant will be consolidated into the Kumamoto site.

The move is in response to market pressures to achieve performance and quality while also restricting costs, the company stated. “To meet such requirements, it is important to implement front-end improvements such as finer fabrication process nodes and enhancements of the assembly and testing for back-end process lines.” Renesas’ strategy involves having large-scale offshore backend process lines to improve cost competitiveness, and strengthen domestic production bases to meet tight delivery schedules, the company stated.

Renesas Kyushu Semiconductor Corp., formed in August 1991, has a paid-in capital of approximately 300 million yen (US $2.6 million), with 500 employees.