Renesas Mobile Corporation commences operation
December 02, 2010 // Phil Ling
The focus of the new company will be on developing SoCs mainly for mobile devices and car navigation systems, for growing markets within network and industrial applications. It coincides with Renesas Electronics' completed purchase of Nokia's wireless modem business and the transfer of the wireless business modem assets to Renesas Mobile.
Renesas Electronics has also transferred the assets of its mobile multimedia SoC business to Renesas Mobile, which it span off through an absorption-type separation on December 1.
By combining Renesas Electronics' mobile platforms and the assets of the wireless modem business acquired from Nokia, Renesas Electronics and Renesas Mobile say they plan to strengthen their product offerings targeting devices incorporating LTE and HSPA+ infrastructure technologies for the growing cloud computing field, as well as markets of mobile phones and car navigation systems mainly in emerging countries.
The spin-off and establishment of Renesas Mobile is said to enable the building of a global business structure specializing in the mobile multimedia business, with more streamlined management and faster time-to-market product launches that contribute to Renesas Electronics' goal of expanding its global business.
Renesas Mobile has regional subsidiary companies based in Finland, India, and China, staffed by personnel transferring from the wireless modem business Renesas acquired from Nokia Corporation, as well as Renesas Design France S.A.S, an SoC design subsidiary of Renesas Electronics.
Of the 1,800 consolidated employees of Renesas Mobile, 75 percent is based outside Japan, enabling the company to promote marketing and design & development operations on a global basis.
Through the acquired LTE and HSPA+ technologies, Renesas Mobile aims to expand its business in mobile platforms and embedded navigation applications mainly in overseas markets and double its sales in FY2012 from the FY2009 sales of Renesas Electronics' mobile multimedia SoC business before the spin-off.
Renesas Mobile says it also plans to start its long-term joint research cooperation with Nokia on next-generation communication technologies.
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