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Renesas Electronics Corporation announced consolidated financial results in accordance with IFRS for the nine months ended September 30, 2023.
Summary of Consolidated Financial Results (Note 1)
Three months ended September 30, 2023 Nine months ended September 30, 2023 Billion Yen % of Revenue Billion Yen % of Revenue Revenue 379.4 100.0 1,107.5 100.0 Operating profit 98.0 25.8 318.5 28.8 Profit attributable to owners of parent 75.3 19.9 271.1 24.5 Capital expenditures
(Note 2)21.3 63.2 Depreciation and amortization 46.9 137.3 R&D expenses (Note 3) 61.2 173.1 Yen Yen Exchange rate (USD) 142 137 Exchange rate (EUR) 156 148 As of September 30, 2023 Billion Yen Total assets 3,291.2 Total equity 2,056.4 Equity attributable to owners of parent 2,052.1 Equity ratio attributable to owners of parent (%) 62.4 Interest-bearing liabilities 710.3 Note 1: All figures are rounded to the nearest 100 million yen.
Note 2: Capital expenditures refer to the amount of capital for property, plant and equipment (manufacturing equipment) and intangible assets based on the amount of investment decisions made during the three months and nine months ended September 30, 2023.
However, the investments from Dialog Semiconductor Limited and Celeno Communications Inc. (hereinafter “Celeno”) are listed as an input basis. It should be noted that as of September 29, 2023, Celeno changed its company name from Celeno Communications Inc. to Renesas Semiconductor Design US Inc.
Note 3: R&D expenses include capitalized R&D expenses recorded as intangible assets.
Note 4: The allocation of the acquisition costs for the business combination with Steradian Semiconductors Private Limited, which was completed on October 17, 2022, has been revised at the end of three months ended March 31, 2023. This revision to the allocation of the acquisition costs has been reflected in the consolidated financial results for the year ended December 31, 2022.
Original – Renesas Electronics
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Renesas Electronics Corporation announced a new organizational structure and leadership team appointments. These changes will take effect January 1, 2024, and will support the company in its next phase of growth and development to become the leader in embedded semiconductor solutions.
1. Establishment of four technology-based product groups
Renesas is establishing a technology-based organization designed to provide more comprehensive and tailored solution offerings. This is aimed at effectively addressing the converging needs of customers and markets by leveraging our embedded processing, analog, power, and connectivity expertise to create complete solutions. The new organization will also enable the company to capitalize on the scale advantages by fostering more cross selling opportunities and broader customer coverage. As part of these changes, Renesas’ businesses will be restructured into four new product groups.
- Analog & Connectivity
Davin Lee, currently Vice President of Advanced Analog Division, will assume the role of Senior Vice President and General Manager of Analog & Connectivity. Under Davin’s leadership, the group will be responsible for analog products as well as the company’s vast portfolio of connectivity products.
- Embedded Processing
Toshihiko Seki, currently Vice President of MCU Device Solution Division, will assume the role of Senior Vice President and General Manager of Embedded Processing. He will be responsible for Renesas’ entire standard catalog embedded processing products. The group is designed to accelerate the company’s efforts to provide more catalog products and solutions to go deeper and broader with new and existing customers.
- High Performance Computing
Vivek Bhan, who currently holds the position of Senior Vice President and Co-General Manager of High Performance Computing, Analog and Power Solutions Group, will assume the role of Senior Vice President and General Manager of High Performance Computing. He will be responsible for the company’s custom and application-specific high computing products.
- Power
Chris Allexandre who currently serves as Senior Vice President, Chief Sales & Marketing Officer (CSMO) and Head of the Global Sales and Marketing Unit will take on a new role as Senior Vice President and General Manager of Power. Chris will be responsible for overseeing Renesas’ power management and discrete products and executing the company’s power strategies.
2. Establishment of new Software & Digitalization team and centralization of Operations, Engineering and key foundational organizations
In addition to the establishment of four product groups, Renesas has also taken steps to streamline its organizational structure by establishing new groups of functions. The new organizations will serve as centralized foundations across all lines of business to better support customers, enhance performance and add value.
- Software & Digitalization
As the company aims to transform the way customers design solutions through an innovative cloud-based platform, Renesas has recently welcomed Buvna Ayyagari as Vice President of the new Software & Digitalization organization to spearhead this effort. Buvna will be responsible for driving Renesas’ unified vision for software and digitalization, ensuring they become a powerful differentiator for the company.
Buvna brings rich and multi-disciplinary expertise across the semiconductor industry from Applied Materials, Synopsys and Intel. She held leadership positions in Engineering, Field Applications Engineering, Marketing, Pre- and Post-sales Customer Support and drove products from definition to high volume. Buvna has experiences in leading digital transformations and has helped to build a team from the ground up to define a software platform, making her well-equipped to continue to drive Renesas’ excellence in software and digitalization.
- Operations
Renesas is accelerating efforts to drive operational excellence to improve service, quality and profitability. Dr. Sailesh Chittipeddi, currently Executive Vice President, General Manager of Embedded Processing, Digital Power and Signal Chain Solutions Group, will take on a new role to oversee the new operations organization. This brings Renesas’ entire manufacturing, supply chain and procurement into a single organization chartered to lead the company’s operational and strategic initiatives to provide exceptional customer experiences.
- Engineering
Renesas is creating a centralized engineering organization to solidify Renesas’ engineering foundation, from product to test engineering. This new organization will direct the development and execution of the company’s technology and product roadmaps. Takeshi Kataoka, Senior Vice President and Co-General Manager of High Performance Computing, Analog and Power Solutions Group, will newly head this Engineering organization.
- Quality Assurance
Takeshi Kataoka will also oversee the Quality Assurance function as Senior Vice President and Head of Engineering and Quality Assurance. His experience and profound expertise in leading Renesas’ automotive semiconductor business will help the company to continue to assure supreme quality levels throughout its products and solutions.
- Sales & Marketing
Bobby Matinpour, who currently serves as Vice President of Global Strategic Vertical & Regional Sales, will succeed Chris Allexandre in the role of Senior Vice President, CSMO and Head of Sales & Marketing.
These leaders in addition to leaders of each of four product groups will report directly to the CEO. This will allow them to have greater influence on Renesas’ strategy and execution, while enhancing accountability.
Hiroto Nitta will retire from his role of Senior Vice President of Information Technology. In addition to his current role, Nitta served multiple managerial positions at Renesas including Vice President and Deputy General Manager of Global Sales Units as well as Senior Vice President and Deputy General Manager of Broad-Based Solution Business Unit. He also served as Senior Vice President and Head of SoC Business in the IoT and Infrastructure Business. Renesas appreciates Nitta’s work over the past 40 years helping the company advance its product leadership and wish him and his family all the best for the future.
As a result of the organizational changes, Roger Wendelken, who has been serving as Senior Vice President and Head of Embedded Microcontroller in the Embedded Processing, Digital Power and Signal Chain Solutions Group will leave Renesas. Roger joined Renesas in 2017 following the Intersil acquisition. He contributed to Renesas as leader of worldwide sales for the broad-based solution business. In his current position, Roger played an instrumental role in releasing the ARM-based RA microcontrollers. The company is grateful to Roger for his significant achievements at Renesas.
Andrew Cowell will retire from his role of Senior Vice President and Head of Performance Power. Since joining Renesas in 2017 from Intersil, Andrew guided the foundation in strengthening the growth and market share gains of the digital multiphase controllers and smart power stages for the infra core power businesses. Renesas thanks Andrew for his remarkable contribution and wishes him all the best for his retirement.
Hiroto Nitta, Roger Wendelken and Andrew Cowell will assist with the transition and leave Renesas by the end of the year.
Brief Biography of the Newly Appointed Leadership Team Members
Davin Lee
Mr. Lee serves as the Vice President and General Manager of the Advanced Analog Division at Renesas Electronics Corporation. He joined Renesas in August 2021 through the acquisition of Dialog Semiconductor PLC where he was the Senior Vice President of the Advanced Mixed-Signal Business.
Prior to Dialog Semiconductor, Mr. Lee held executive-level management positions at numerous semiconductor companies including Scintera Networks (CEO), Intersil (VP/GM of Power Management), Xicor (VP of Marketing), Altera and National Semiconductor.
Davin Lee holds a BSEE degree from the University of Texas at Austin and an MBA degree from Kellogg School of Management at Northwestern University.
Toshihiko Seki
Mr. Seki serves as the Vice President of MCU Device Solution Business Division at Renesas Electronics Corporation since January 2022. In this role, he is mainly responsible for leading the company’s proprietary RL78 microcontroller (MCU) business and has been instrumental in achieving global leading market share position for the 16-bit MCU architecture category.
Mr. Seki has more than 30 years of experience in the semiconductors industry. He started his career in ASIC/memory product marketing at Hitachi, Ltd., and held various marketing management positions at Renesas, including Director of Marketing & Business operations at Renesas Electronics America.
Mr. Seki holds a bachelor’s degree in Liberal Arts from Sophia University, Japan.
Bobby Matinpour
Mr. Matinpour serves as the Vice President of Global Strategic Vertical & Regional Sales at Renesas Electronics Corporation since April 2022. Previously at Renesas, he was the Vice President of Timing and Standard Product Business Division since March 2019.
Prior to joining Renesas, he served as the Vice President of High Speed Data & Clock Business Unit at Texas Instruments. A 20-year veteran of semiconductor industry, Mr. Matinpour has a diverse and wholistic industry experience covering engineering, product marketing, operations, and sales management for a wide-range of products and solutions addressing industrial, infrastructure, consumer, and automotive markets.
Prior to joining Texas Instruments, Mr. Matinpour held various engineering and marketing management positions at National Semiconductor, Epson-Toyocom, and several semiconductor startups.
Mr. Matinpour holds a BSEE from Virginia Tech and MS and PhD EE from Georgia Institute of Technology.
Buvna Ayyagari
Ms. Ayyagari joined Renesas in August 2023 as Vice President of Software and Digitalization. In this newly created role, Ms. Ayyagari is responsible for spearheading the definition, development, and implementation of a market leading platform with industry standard customer tools.
Ms. Ayyagari brings rich and multi-disciplinary expertise across the semiconductor industry from Applied Materials (AMAT), Synopsys (IP and EDA) and Intel where she held executive and leadership positions in R&D, Product Engineering, Field Applications Engineering, Marketing, Pre- and Post-sales Customer Support and drove products from definition to high volume.
Ms. Ayyagari holds a master’s degree in computer engineering from the University of South Carolina. She is the author of several publications and patents and serves on the Board of non-profit organizations.
Original – Renesas Electronics
- Analog & Connectivity
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Two cluster tools of centrotherm’s new generation horizontal furnace c.HORICOO 300 will be integrated into Renesas’ 300 mm wafer production line in Kofu, Japan (Yamanashi Prefecture). Renesas Electronics Corporation is one of the global leading semiconductor manufacturers headquartered in Japan, that provides microcontrollers, analog devices and power semiconductors for automotive and industrial applications. Renesas is the first manufacturer in Japan to use the fully automated, high-throughput production solution in mass production.
The 8-tube cluster c.HORICOO 300 is designed for oxidation and annealing processes on 300 mm silicon wafers. With its fully automated wafer and boat handling, the system offers a reduction in total cost of ownership of up to 50% compared to vertical furnace solutions with a significant improvement in yield. After the market launch and evaluation phase in 2018, the high-throughput system cluster is already integrated in the production lines of well-known European customers. Due to the sales success at Renesas, we expect a pull effect with Japanese power-semiconductor device makers as well as with the leading Asian manufacturers.
From 2024, Renesas will start production of its new generation IGBTs at its Kofu fab. This is where transistors for the next generation of inverters for electric vehicles are produced, which are expected to achieve considerable savings in battery power and thus significantly increase the driving range.
“The c.HORICOO 300 is an important component for the expansion of our power semiconductor fab for 300-mm wafers. centrotherm is one of the leading suppliers of thermal process technology for the semiconductor industry, and we look forward to deepening our relationship as well as collaborating in the coming years,” said Kojiro Horita, Senior Director of Power Device Project Office, Production and Technology Unit, Renesas Electronics Corporation.
Original – centrotherm
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Renesas Electronics Corporation announced a change in its largest major shareholder, which will become effective as of August 23, 2023.
Renesas received notification from INCJ, Ltd. on August 18, 2023, that it will sell a portion of its holdings in Renesas. Effective August 23, 2023, when the stock transfer is completed, INCJ, Ltd. will no longer be the largest major shareholder of Renesas.
Name INCJ, Ltd. Location 1-3-1, Toranomon, Minato-ku,Tokyo, Japan Names and titles of representatives Chairman and CEO: Toshiyuki ShigaPresident and COO: Mikihide Katsumata Main Business Specific business activity support and other work stipulated in the current Act on Strengthening Industrial Competitiveness as of September 21, 2018 Amount of capital 500 million yen Number of voting rights(Number of shares held) Ratio to the number of voting rights held by all shareholders Shareholder ranking Before the change
(June 30）1,838,127(183,812,775 shares） 10.41% 2nd After the change 1,749,121(174,912,175 shares) 9.90% 2nd Note 1. “Ratio to the number of voting rights held by all shareholders” before the change is calculated based on the number of voting rights of all shareholders (17,650,540) as of June 30, 2023.
Note 2. “Ratio to the number of voting rights held by all shareholders” after the change is calculated based on the number of voting rights of all shareholders as of June 30, 2023 (17,650,540) plus the number of voting rights (3,983) pertaining to the treasury shares subsequently disposed under Renesas’ stock compensation plan, ending in a total voting rights of 17,654,523 (but not including treasury stock disposed after August 1, 2023).
Note 3. While The Master Trust Bank of Japan, Ltd. (Trust Account) is ranked first among large shareholders before and after the change, it does not fall under the category of major shareholder or the largest shareholder as part of the major shareholder group.
Original – Renesas Electronics
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Power semiconductors companies continue to invest heavily in new factories, production capacity expansions, and R&D centers. Thus, recently the total value of the active investment projects launched since 2021 has surpassed 70 billion USD.
Driven by the pandemic and geopolitics, major power semiconductors companies started to invest more in new factories and joint ventures to have more confidence in their own supply chain in the future.
As of today, it is obvious to see the major split of power semiconductors into three geographical regions – the USA, Europe, and Asia. Asia may as well be divided into several regions with China being the leading investor of all.
Despite the ongoing tensions and export restrictions between the US, Europe, and China related to advanced semiconductors, when it comes to power semiconductors European companies continue to invest in the Chinese market expanding their product capacity or establishing new joint ventures like STMicroelectronics and Sanan Optoelectronics did recently.
Even with some delay, Japanese companies like ROHM, Mitsubishi Electric, Fuji Electric, Renesas Electronics, Toshiba, and others, pushed by their US and European competitors, announced their own projects aimed to secure the capacity on the wafer and device level to correspond to the growing demand for Si and SiC based power semiconductors coming from the electric vehicle and charging, photovoltaics, battery energy storage systems, and the other emerging applications.
If we take a closer look at all projects announced, SiC is the leading technology with over 60% of total investment. Over 25 market leaders announced their plans to invest in silicon carbide.
Thus, ROHM is investing in new production to multiply its SiC capacity in the coming years. Mitsubishi Electric teams up with Coherent to scale manufacturing of SiC power devices on a 200 mm SiC technology platform as one of the steps of their 260 billion yen investment project planned till March 2026.
Infineon Technologies continues to bet on both local European and Asian markets investing in their new fab in Dresden and expanding backend operations in Indonesia. STMicroelectronics continues to invest in WBG semiconductors with the ongoing construction of a new wafer fab in Sicily announced in 2022.
With a global total number of new investment projects of over 80, the US companies Wolfspeed, onsemi, and Microchip Technology, similar to their European counterparts, invest locally, in Europe and Asian markets. Totally the US semiconductor companies announced new projects valued at almost 9 billion USD.
With the US and EU Chips Acts, and similar initiatives in China, Japan, South Korea, and some other countries, it is clear that the investment into power semiconductors industry will continue to reach 100 billion USD soon.
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If you haven’t had a chance to visit a wonderful Lake Maggiore yet, this September you can enjoy one of the most beautiful places in Italy in a company of power semiconductors superstars discussing SiC & GaN technologies. After a successful series of events across the world, International Semiconductor Executive Summits (ISES) returns to Italy with ISES EU Power 2023 edition.
With a regional focus on the power semiconductor market, the EU Power International Semiconductor Executive Summits seeks to strengthen the EU supply chain and promote key executives in the semiconductor manufacturing, design, and research through our networking and conference platform which consists of working with key industry stakeholders to encourage progress and collaboration.
With speakers coming from STMicroelectronics, Infineon Technologies, Semikron Danfoss, onsemi, Wolfspeed, Renesas, ROHM, Nexperia, SK Siltron, Soitec, Okmetic, Aehr Test Systems, Amkor Technology, Innoscience, Cambridge GaN Devices, Ferrari, Volkswagen, Volvo, Škoda, and many more leaders of power electronics and automotive industries, you are about to be a part of the power semiconductors event like never before.
During two days of the event, all participants will be discussing and disclosing the latest news and advances in silicon carbide and gallium nitride technologies, sharing the view of the future and taking a close look at the current state of the industry, supply chain, global collaboration, exhisting problems and emerging opportunities.
You can find the agenda of ISES EU Power 2023 at the event website.
International Semiconductor Executive Summit EU Power provides a unique platform for networking and expanding your knowledge base. Here are just a few topics that will be covered this September:
- SiC and GaN Manufacturability
- Variety of WBG Applications
- SiC Wafer & Materials
- Power Packaging
- Design and Reliability
The event offers various packages for participation:
- Standard Pass
- Member Pass
- Partner Pass
- Virtual Pass
- Numerous Sponsorship Packages and VIP Passes
All interested to participate can register at ISES EU Power 2023 website.
ISES EU Power 2023 will take place at Regina Palace Hotel. Overlooking the shore of Lago Maggiore, the Regina Palace Hotel is located in a favored spot in the center of Stresa, considered the pearl of Lago Maggiore. The hotel represents yesteryear’s charm and prestige enriched by the history and the grace that each epoch has donated.
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Renesas Electronics Corporation and Wolfspeed, Inc. announced the execution of a wafer supply agreement and $2 billion (USD) deposit by Renesas to secure a 10 year supply commitment of silicon carbide bare and epitaxial wafers from Wolfspeed. The supply of high-quality silicon carbide wafers from Wolfspeed will pave the way for Renesas to scale production of silicon carbide power semiconductors starting in 2025. The signing ceremony of the agreement was held at Renesas’ headquarters in Tokyo between Hidetoshi Shibata, President and CEO of Renesas, and Gregg Lowe, President and CEO of Wolfspeed.
The decade-long supply agreement calls for Wolfspeed to provide Renesas with 150mm silicon carbide bare and epitaxial wafers scaling in CY2025, reinforcing the companies’ vision for an industry-wide transition from silicon to silicon carbide semiconductor power devices. The agreement also anticipates supplying Renesas with 200mm silicon carbide bare and epitaxial wafers after the recently announced John Palmour Manufacturing Center for Silicon Carbide (the “JP”) is fully operational.
The need for more efficient power semiconductors, which supply and manage electricity, is dramatically increasing throughout automotive and industrial applications, spurred by the growth of electric vehicles (EVs) and renewable energy. Renesas is moving quickly to address the growing demand for power semiconductors by expanding its in-house manufacturing capacity. The company recently announced the restart of its Kofu Factory to produce IGBTs, and establishment of a silicon carbide production line at its Takasaki Factory.
Compared to conventional silicon power semiconductors, silicon carbide devices enable higher energy efficiency, greater power density and a lower system cost. In an increasingly energy-conscious world, the adoption of silicon carbide is becoming ever more pervasive across multiple high-volume applications spanning EVs, renewable energy and storage, charging infrastructure, industrial power supplies, traction and variable speed drives.
“The wafer supply agreement with Wolfspeed will provide Renesas with a stable, long-term supply base of high-quality silicon carbide wafers. This empowers Renesas to scale our power semiconductor offerings to better serve customers’ vast array of applications,” said Hidetoshi Shibata, President and CEO of Renesas. “We are now poised to elevate ourselves as a key player in the accelerating silicon carbide market.”
“With the steepening demand for silicon carbide across the automotive, industrial and energy sectors, it’s critically important we have best-in-class power semiconductor customers like Renesas to help lead the global transition from silicon to silicon carbide,” said Gregg Lowe, President and CEO of Wolfspeed. “For more than 35 years, Wolfspeed has focused on producing silicon carbide wafers and high-quality power devices, and this relationship marks an important step in our mission to save the world energy.”
The Renesas $2 billion deposit will help support Wolfspeed’s ongoing capacity construction projects including the JP, the world’s largest silicon carbide materials factory in Chatham County, North Carolina. The state-of-the-art, multi-billion-dollar facility is targeted to generate a more than 10-fold increase from Wolfspeed’s current silicon carbide production capacity on its Durham, North Carolina campus. The facility will produce primarily 200mm silicon carbide wafers, which are 1.7x larger than 150mm wafers, translating into more chips per wafer and ultimately, lower device costs.
Original – Renesas Electronics
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Nidec Corporation and Renesas Electronics Corporation have agreed to join forces on the development of semiconductor solutions for a next-generation E-Axle (X-in-1 system) that integrates an EV drive motor and power electronics for electric vehicles (EVs).
Today’s EVs are increasingly adopting the 3-in-1 unit called E-Axle, which integrates a motor, inverter, and gearbox (reduction gear). To realize high-performance and efficiency as well as smaller size, light weight and lower cost, and to accelerate vehicle development, EVs are also integrating power electronics controls such as DC-DC converters and on-board chargers (OBCs). EV manufacturers in advanced markets such as China have developed an X-in-1 platform that integrates multiple functions, accelerating the adoption in many vehicle models.
As X-in-1 integrates multiple functions and increases in complexity, maintaining a high-level of quality in vehicles becomes challenging. Thus, developing preventive safety technologies such as diagnostic functions and failure prediction is crucial for ensuring safety and security in vehicles. To address this challenge, the two companies agreed to combine Nidec’s motor technology and Renesas’ semiconductor technology to jointly develop a highly reliable and high-performance proof of concept (PoC) for the X-in-1 system. The PoC is designed to support the industry’s highest performance and efficiency as well as smaller size, light weight and lower cost for the X-in-1 system.
The companies plan to launch the first PoC by the end of 2023, which will feature a 6-in-1 system with a DC-DC converter, OBC, and power distribution unit (PDU) as well as a motor, inverter, and gearbox. As a second phase in 2024, Nidec and Renesas plan to develop a highly integrated X-in-1 PoC that incorporates a battery management system (BMS) along with other components. The first PoC will include power devices based on SiC (silicon carbide), and the second PoC will replace the DC-DC and OBC power devices with GaN (gallium nitride), offering excellent performance in high-frequency operation, to further reduce size and cost.
Building on the PoC developed through this collaboration, Nidec plans to rapidly productize E-Axle systems to add to its portfolio and ramp up to mass production to lead the E-Axle market. Renesas plans to develop and deliver turnkey solutions for increasingly complex X-in-1 systems by expanding the jointly developed PoC for E-Axle reference designs.
Original – Renesas Electronics
