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Renesas Technology to Expand Back-end Process Plant in Beijing by Adding New Building on Site

Renesas Technology Corp. today announced plans to invest ¥4 billion to add a new building at its back-end process plant, Renesas Semiconductor (Beijing) Co., Ltd. (RSB), to increase its capacity for microcontroller (MCU) production. A ceremony for celebrating the start of construction will be held on March 26 with representatives from the city of Beijing and Renesas. Renesas aims to increase its current MCU market share from 25 percent globally (Renesas estimated) to 30 percent to solidify its leading position by boosting the MCU production. In order to do so, Renesas will continue to provide compelling MCU-based solutions to China’s growing MCU market among others. Also, Renesas is now streamlining its back-end process resources by increasing production at overseas facilities for high-volume products to remain price competitive. A new building is being added in Beijing to enable Renesas to achieve these goals. The new building is expected to be completed and ready for full operation by the end of fiscal 2008. The expansion effort will also increase the production floor area by 60 percent, from 18,000 m2 to 29,000 m2. At the same time, RSB's total manufacturing capacity for MCUs, mixed-signal ICs and other products will increase from 50 million units per month in fiscal 2007 to 100 million units in fiscal 2012. In addition to high-volume products, RSB also has a production line to manufacture high-quality, high-performance MCUs for automotive applications to respond to the growing demand of the Chinese automotive market. Besides RSB in Beijing, Renesas also owns a back-end process plant in Suzhou, Renesas Semiconductor (Suzhou) Co., Ltd. (RSC). Together, both plants (RSB and RSC) manufacture 70 million units today, and the total capacity is expected to grow to 140 million units in fiscal 2012 after the new plant comes on stream. -- RSB Overview -- Company name: Renesas Semiconductor (Beijing) Co., Ltd. -- Head office: #7, 8th Street, Shangdi Information Industry Base, Haidian District, Beijing, People's Republic of China -- Representative: Teruaki Ogata, President -- Founded: March 1996 -- Capital: $64.46 million -- Business lines: Assembly and testing of MCU's, mixed-signal ICs and other semiconductor devices -- Number of employees: About 2,100 (March 2008) -- Floor area: 18,000 m2 (Combined size of the existing facilities; the planned facility will be expanded to 29,000 m2) About Renesas Technology Corp. Renesas Technology Corp. is one of the world's leading semiconductor system solutions providers for mobile, automotive and PC/AV (Audio Visual) markets and the world's No.1 supplier of microcontrollers. It is also a leading provider of LCD Driver ICs, Smart Card microcontrollers, RF-ICs, High Power Amplifiers, Mixed Signal ICs, System-on-Chip (SoC), System-in-Package (SiP) and more. Established in 2003 as a joint venture between Hitachi, Ltd. (TSE:6501) (NYSE:HIT) and Mitsubishi Electric Corporation (TSE:6503), Renesas Technology achieved consolidated revenue of 953billion JPY in FY2006 (end of March 2007). Renesas Technology is based in Tokyo, Japan and has a global network of manufacturing, design and sales operations in around 20 countries with about 26,500 employees worldwide. For further information, please visit http://www.renesas.com.

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