Renesas Electronics Announces Growth Strategies for its SoC Business Targeting Mobile and Multimedia Applications

Quickly Address the Market Demand through Integration of the Product Platform

TOKYO, Japan, — September 17, 2010 — Renesas Electronics Corporation (TSE: 6723), a premier supplier of advanced semiconductor solutions, today introduced business strategies on its system-on-chip (SoC) business for mobile and multimedia applications, areas that are expected to extend across various fields and are suitable for the company to best bring out its strengths.

Renesas Electronics' 2nd SoC Business Unit engages in SoC businesses for (1) mobile applications including mobile devices, smartphones and netbooks, (2) automotive information systems including car navigation systems, and (3) home electronics systems including set-top-boxes (STBs) and digital TVs (DTVs) and will target average annual growth rate of approximately 16 percent from FY2010 to FY2012, aiming to contribute to the realization of enriched society by providing products for the growing market and timely solutions.

1. Provide timely next-generation products and strengthen cost-competitiveness through development of the “new integrated SoC platform”

Renesas Electronics developed a “new integrated SoC platform”, which incorporates the core technologies essential for the three areas of the future network society: mobile devices, automotive information systems and home multimedia applications. The “new integrated SoC platform” has been formed by combining advanced technologies of the respective former companies (NEC Electronics Corporation and Renesas Technology Corp.). By developing new products for these three areas based on the newly integrated platform, Renesas Electronics will enhance its development efficiency while retaining continuity from its existing products. The company will also continue to provide support for its customers using existing products.

Renesas Electronics has decided to name its new SoCs developed through the new integrated platform the “R-Mobile” for mobile devices, the “R-Car” for SoCs for automotive information systems and the “R-Home” for SoCs for home multimedia applications.

2. “R-Mobile” growth strategies

By combining the company's market-proven application processors for mobile devices and RF technologies with the wireless modem technology that the company has acquired recently from Nokia Corporation, Renesas Electronics aims to strengthen its existing business for the mobile phone market and expand its business into the convergence market, such as netbooks and e-books. Especially for the convergence market, Renesas Electronics will provide an extensive range of products and solutions by utilizing the company's advantage and proven track record in various fields with its microcontrollers (MCU).The company also plans to develop a low-cost turn-key solution platform for the rapidly growing smartphone market and strengthen its business in the European and Asian markets.

Renesas Electronics will integrate the existing SH-Mobile and EMMA Mobile™ and will begin its product development with two product groups: the “R-Mobile A” for general-purpose application processors and the “R-Mobile U” with built-in modem and camera ISP (image signal processor).

3. “R-Car” growth strategies

Renesas Electronics will strengthen its SoC products for mid-range and entry navigation systems, areas which are expected to grow rapidly, by maintaining backward compatibility with software of the high-end navigation systems, reducing system development cost and facilitating development process. The company also aims to retain and further expand its industry-leading market share by providing enhanced features such as gesture recognition technology and connectivity features.

Renesas Electronics will integrate the existing SH-Navi and EMMA™ Car and will begin its product development with three product groups: the “R-Car H” for high-end navigation systems, the “R-Car M” for mid-range navigation systems and the “R-Car E” for entry navigation systems.

4. “R-Home” growth strategies

Renesas Electronics aims to expand its SoC business by focusing on the market of STB and DTV networks, which has been expanding with the conversion to digital broadcasting and with the increasing numbers of devices with network connectivity being launched. The company will accelerate the sales of STB SoCs particularly in China and developing markets, and the sales of DTVs in markets such as North America, China and South America.

Integrating the company's existing EMMA products for STBs, DTVs and BDs (Blu-ray discs) and the c-series products for DTVs, Renesas Electronics will begin its product development with two product groups: the “R-Home S” for STBs and the “R-Home T” for DTVs.

In addition to above strategies, Renesas Electronics will also integrate existing partner programs, including SH-Mobile Consortium, SH-Navi Consortium and platformOViA™, and launch a new partner program for SoC business, aiming to strengthen the system solution lineup on a worldwide basis through collaboration with partner companies.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE: 6723), the world's number one supplier of microcontrollers, is a premier supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad-range of analog and power devices. Business operations began as Renesas Electronics in April 2010 through the integration of NEC Electronics Corporation (TSE:6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics has subsidiaries in 20 countries worldwide. More information can be found at www.renesas.com.




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