Industry Summary Articles

Renesas Electronics Corporation expects the acquisition of Integrated Device Technology, Inc. (“IDT”) to close on March 29, 2019 PDT, March 30, 2019 JST. Following this move, Renesas will accelerate its efforts towards the realization of “One Global Renesas” with the appointment of new executive personnel and a change in its organizational structure. The changes to executive personnel and an organization moving to a two-business unit structure will be implemented step-by-step, as detailed below, with the new organizational structure scheduled to be in place by July 2019.

1. Background to New Executive Personnel and Change in Organizational Structure

Aimed at achieving stable and sustainable growth in the rapidly changing, intensely competitive semiconductor market and becoming a global leading supplier of semiconductor solutions in the focus segments, Renesas has been working to expand and strengthen its business portfolio. As part of this initiative, in February 2017, Renesas acquired Intersil Corporation (“Intersil”) and its business in analog semiconductor devices, particularly power management ICs. Furthermore, with the completion of the IDT acquisition, Renesas will gain IDT’s expertise in analog semiconductor devices for applications centered on sensors, connectivity, and wireless power, extending its portfolio still further.

Following the acquisition of Intersil, Renesas pursued the integration of Intersil into its business operations to move beyond its Japan-centric management approach and advance towards the goal of realizing “One Global Renesas” by adopting a management approach based on a cross-regional, global organizational structure. The IDT acquisition will further accelerate this process, and in order to assure a smooth business integration transition, Dr. Sailesh Chittipeddi, IDT’s current Executive Vice President, Global Operations and Chief Technology Officer of IDT, will assume the concurrent posts of President and CEO of IDT and Executive Vice President of Renesas effective March 30, 2019.

Additionally, in order to efficiently and rapidly carry out the integration of IDT’s business operations, Renesas will merge the current Industrial Solution Business Unit (“IBU”) and Broad-based Solution Business Unit (“BBU”), which oversee businesses in a wide range of fields, including non-automotive industrial and infrastructure, to form the new IoT and Infrastructure Business Unit (“IIBU”), effective July 1, 2019. Together with the current Automotive Solution Business Unit (“ABU”), which oversees the automotive business, the IIBU will consolidate its position as the second pillar of Renesas’ business model moving forwards. Dr. Sailesh Chittipeddi will lead IIBU, where he will work to accelerate the generation of synergies between digital and analog through consolidation of IBU and BBU as well as IDT’s integration. The transition to this new organizational structure based on two business units, ABU and IIBU, will enable Renesas to efficiently and swiftly focus its resources on products and solutions with high profit ratios and an ability to generate cash, giving rise to solutions that are both highly competitive and provide high added value, and realizing future growth as “One Global Renesas.”

2. Outline of the Executive Personnel Changes

Note: Asterisks (*) indicate position currently held.

(1) Change in Executive Vice Presidents

[As of March 30, 2019]
New Executive Vice President:

Sailesh Chittipeddi, Executive Vice President, Global Operations and Chief Technology Officer of IDT *
(Note) Dr. Chittipeddi will also assume the role of President and CEO of IDT as of March 30, 2019.

[As of March 31, 2019]
Retiring Executive Vice Presidents:

Yoshikazu Yokota, Executive Vice President and General Manager of Industrial Solution Business Unit*
(Note) Mr. Yokota will assume the role of Fellow effective April 1, 2019.

Necip Sayiner, Executive Vice President and General Manager of Broad-based Solution Business Unit*

(2) Change in Senior Vice Presidents

[As of March 31, 2019]
Retiring Senior Vice President:

Michael Hannawald, Senior Vice President and Deputy General Manager of Industrial Solution Business Unit*

[As of April 1, 2019]
New Senior Vice Presidents:

Chris Allexandre, Senior Vice President of Global Sales and Marketing, IDT*

Roger Wendelken, Vice President of Global Sales Division, Broad-based Solution Business Unit*

To view the original press release, please click here.

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