Hitachi High-Technologies to acquire Renesas' semiconductor manufacturing equipment business

TOKYO, JAPAN: Hitachi High-Technologies Corp. and Renesas Technology Corp. announced a basic agreement for the transfer of the semiconductor manufacturing equipment business of wholly owned Renesas subsidiary Renesas Eastern Japan Semiconductor Inc. to Hitachi High-Tech Instruments Co. Ltd., a wholly owned subsidiary of Hitachi High-Technologies. Scheduled for next spring, this business transfer is expected to enhance Hitachi High-Technologies’ semiconductor manufacturing equipment business and improve management efficiency.

Renesas Eastern Japan Semiconductor is currently charged with the development and manufacture of semiconductor manufacturing equipment, with Hitachi High-Technologies largely responsible for global sales of these products. However, both Hitachi High-Technologies and Renesas have acknowledged that the integrated management of development through to manufacturing, sales and services pertaining to semiconductor manufacturing equipment is the most desirable option going forward.

This recognition applies not only to the ability to respond flexibly to the changing market environment in recent years, further business structure enhancements, and improved management efficiency, but also to efforts to accelerate the development of new products that reflect customer needs. With this latest business transfer, Hitachi High-Technologies aims to establish and strengthen its business base in the semiconductor back-end process equipment business, where market expansion is widely anticipated.

Specifically, the transfer will see Renesas Eastern Japan Semiconductor as the absorbed company, with Hitachi High-Tech Instruments as the surviving company. Through synergies with technological and development capabilities honed by Hitachi High-Tech Instruments in the surface mount systems and semiconductor manufacturing equipment businesses over the years, Hitachi High-Technologies will strive to expand business by bringing even more superior products to market.

Renesas, for its part, is pursuing various measures targeting its production structure, employee resource optimization, and other areas with the goal of improving and enhancing a stable management base – one capable of securing profits even under the adverse business climate that has emerged since last year. The business transfer represents an important decision for Renesas in terms of promoting effective resource utilization for the enhancement of its core competency, the microcontroller business.

In pursuing the swift completion of a variety of similar measures going forward, Renesas is determined to realize a more stable management base and a stronger business base for its own operations.

Due diligence for this transfer of the semiconductor manufacturing equipment business is presently moving forward. Based on the outcome of this process, Hitachi High-Technologies, Hitachi High-Tech Instruments, Renesas, and Renesas Eastern Japan Semiconductor are scheduled to sign a final contract in December 2009. This transfer of the semiconductor manufacturing equipment business has negligible impact on the FY2009 consolidated financial results of Hitachi High-Technologies.