According to renesas, it was a long-planned decision.When the company announced the closure of its yamaguchi plant and some of its shiga plants in June 2018, renesas said it would close its silicon line within two to three years
As for why the plant was closed, renesas said it was related to the competitive situation in the market over the past few years.They point out that in the past few years, increased technology and price competition across the market has led to a further decline in the market share of the company's existing products, and delayed the development of next-generation communications products, making it difficult for the company to achieve the expected revenue
Renesas initially believed it could further expand its LD/PD business in the rapidly growing optical communications market by halting production of silicon products, reducing the size of the production line, and maintaining and improving the efficiency of the shiga plant.But they found that the company was struggling to do so after streamlining its shiga line.
Renesas said that in order to maintain the production and supply of LD/PD products, the company has been seriously considering the possibility of moving production to other locations within renesas group and its partners in Japan and abroad.However, due to the nature of the semiconductor business and products and the difficulty in achieving the transfer within a reasonable time, the company decided to exit the LD/PD business.
For the future development of this part of the business, renesas said in the announcement that this is divided into three parts:
Processing of discontinued products;Renesas said customers using discontinued products should discuss future actions with their sales team, including the final requirements for the product
Operation of shiga plant;Renesas plans to stop all production at the shiga plant as soon as practicable based on discussions with the customer
Employees working in shiga factories;Regarding the employees, renesas said they would, in principle, be transferred to other operations and factories
According to Japanese media reports, renesas is considering a sale after closing the shiga plant, and renesas will decide on the suspension of LD/PD after consultation with customers. In addition, the production line of shiga's silicon products is expected to stop at the end of March 2021
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