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Renesas Technology: new $7-billion semiconductor child of Hitachi and Mitsubishi

Hitachi and Mitsubishi Electric signed the contract to merge their assets in the Renesas Technology Corp. The parent-companies will continue to negotiate about merging their electronic component departments as well.

These plans were announced for the first time in March 2002. Renesas Technology, new semiconductor maker, has $7 billion authorized capital. The share of Hitachi makes 55%, Mitsubishi owns 45%. According to iSuppli, after the reorganization Renesas will become the world-third semiconductor maker after Intel and Samsung.

In H1 2003 Hitachi and Mitsubishi are expected to merge their foreign assets in Europe, USA, etc. Renesas Technology Sales will be formed after the marketing departments merge (by about April 1).

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