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Industry News
October 12, 2012
Renesas Electronics Transfers the Stocks of Sub-Subsidiary and Part of Subsidiary Business
Renesas Electronics Corporation, Renesas Eastern Japan Semiconductor, Inc., a wholly owned subsidiary of Renesas Electronics, and AOI ELECTRONICS CO.,LTD. announced that they signed the definitive agreement to transfer all stocks of Renesas High Components, Inc. (RHC), a wholly owned subsidiary of Renesas Eastern Japan Semiconductor, and Renesas Eastern Japan Semiconductor's partial sales business including the sales staff for the companies outside Renesas group, related to the RHC's contract manufacturing service. Based on the agreement signed today, the companies plan to complete this transfer on January 1, 2013.
Recommended: Altera Acquires Enpirion for $140 Million, Forms Power Business Unit
Purpose of stock transfer
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Renesas Electronics is implementing reforms of its production sites in Japan to enhance the profit base as announced in the press release, "Renesas Electronics Announces the Direction of Various Measures to Establish Robust and Profitable Structure", on July 3, 2012. Renesas Electronics announced that RHC's "Transfer will be considered within one year" because the production load decreased due to an acceleration of products shifting abroad. Under these circumstances, Renesas Electronics, Renesas Eastern Japan Semiconductor, and AOI ELECTRONICS agreed to transfer RHC to AOI ELECTRIC, who has been considering how to both expand its business and to improve production efficiency, whilst also aiming to improve product development efficiency for expanded operation in the future as well as having a system of backup production sites in place for times of disaster.
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