Gadgets & Electronics

Renesas Changes Chinese Operational Structure To Aid Expansion

Semiconductor system solutions provider Renesas Technology is reorganizing its sales and application technology support structure in China with the aim of expanding its business.

Initially, Renesas Technology's sales subsidiaries underwent restructuring on December 1, 2006. This was followed on January 1, 2007 by a restructuring of the application technology subsidiaries. Under the new arrangement, a total of four sales and application technology subsidiaries will operate as a virtual, single structure under the unified management system of a single CEO, Managing Officer Masahiro Yamamura–presently stationed in Shanghai.

Renesas has considered China to be a key market ever since its establishment in 2003. The local subsidiary, Renesas Technology (China) Company, started operation on July 1, 2004, to reinforce management and adjustment functions for the Chinese market. Now a new structure has been launched to further strengthen these capabilities by consolidating them, virtually, into a single, unified company.

In the past, Renesas' sales operations in China were divided between sales subsidiaries headquartered in Shanghai, which were responsible for the northern portion of the Chinese mainland, and sales subsidiaries headquartered in Hong Kong, which focused on the southern China region. In addition, separate sales subsidiaries served Japanese companies, as well as other customers. There were also separately managed application technology subsidiaries providing support services, one headquartered in China and others headquartered in Singapore.

However, Renesas' customers continue to expand their networks of regional facilities throughout China, with no distinction between the northern and southern regions. Renesas therefore decided to carry out a thorough reorganization and consolidation of its sales and application technology operations, unifying the management system and eliminating the regional distinction between north and south in order to provide speedier and more comprehensive customer support.

Specifically, subsidiaries with identical functions have been combined. Four sales subsidiaries with a total of ten facilities have been consolidated as two subsidiaries with seven facilities: Renesas Technology (Shanghai) Co., Ltd., with facilities in Shanghai, Beijing, Qingdao, and Hangzhou, and Renesas Technology Hong Kong Ltd., with facilities in Hong Kong, Shenzhen, and Xiamen. Application technology operations have been consolidated as two subsidiaries: Renesas System Solutions (Beijing) Co., Ltd., with facilities in Beijing, Shanghai, and Shenzhen, and the new Renesas System Solution Hong Kong Ltd., based in Hong Kong. Managing Officer Masahiro Yamamura will serve as the CEO of these four companies. This new arrangement will put the sales and application technology teams in China under a unified management, regardless of facility location, and enable them to provide customers with integrated contact points, as well as more efficient and comprehensive support.

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