Renesas close German plant

The decision was executed at the board meeting today. Renesas Technology plans to stop manufacturing activities at RSEA within 2004 and to transfer microcontroller (MCU), SRAM, and NOR Flash memory to manufacturing sites in Japan. RSEA will start to discuss terms and conditions with regard to this closure with the Works Council. Semiconductor market is showing signs of expansion in the long term, and competitive global strategy is required in such market environment. In response to the market demand, Renesas Technology is optimizing its business structure in order to meet the needs of our customers. Business structural reform shall be executed on mid and long term basis and lower manufacturing cost shall be carried out in order to improve efficiency of the line production. The closure of RSEA is a part of Renesas Technology’s effort to optimize business structure. Renesas Technology endeavors to improve customer service by building a strong corporate structure.