Renesas to quit Flash development

Renesas Technology Corp is to halt development of AG-AND Flash memory chips with capacities of 8Gbit and beyond.

Renesas Technology Corp is to halt development of AG-AND Flash memory chips with capacities of 8Gbit and beyond.

This move is being taken in order to concentrate management resources on the standard product business, centred around logic LSI devices such as microcomputers and LCD drivers, and the system solution business, centred around SoC products.

Renesas Technology will continue to supply customers with existing Flash memory products, mainly 1 and 4Gbit products as AG-AND Flash memory is used in many different applications, including Flash cards for mobile and digital still cameras, and portable music players.

Renesas Technology will work to improve its existing facilities, while strengthening further co-operative relationship with partners to aim for expanding production capacity.

Nowadays, the trend toward more sophisticated functions, compact size, and shorter product development cycles is accelerating rapidly in the field of mobile and digital consumer products, such as, digital still cameras, digital audio and video equipments.

Furthermore, the market structure, in terms of the mechanisms determining pricing of applications and competition for market share among application manufacturers, is shifting from a manufacturer-led to a market-led model.

Finally, the challenge poised by low-cost products is increasing, due mainly to factors such as the geographical diffusion of digital technology and the growing strength of competitors in Asia.

In Flash memory business, achieving process shrink and maintaining a large production scale are the most important elements.

For microcomputers and SoC products, it is essential to combine price competitiveness with short delivery times.

At the same time, the need for products with high added value in terms of design is becoming more important than ever before.

In coming to its decision, Renesas Technology judged that in the current business climate there is an unprecedented need for bold selection and concentration of resources.

The aim is to achieve a new level of corporate competitiveness by making efficient use of the company's design and development resources.

This will be achieved by focusing on the key business of standard products business, especially microcomputers and LCD drivers, and system solution business including SoC products, which integrate multiple functions on a single chip.

In the years ahead Renesas Technology, as a leading semiconductor manufacturer for ubiquitous networking society, will endeavor to optimise development resources, while boosting its competitiveness and continuing to be a forerunner in the industry by offering new and attractive products.

In this way the company hopes to achieve sustained growth under challenging market conditions and solidify its position as an industry leader.

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