Renesas Electronics: Delay the pay rise! Layoffs!
Time:2024-04-13
Views:233
Source: Daohe Shun Xin Wen
Renesas Electronics, a Japanese automotive and industrial chip company, has decided to postpone regular salary increases from April to October this year.
The slow recovery in the semiconductor market prompted Renesas to reduce personnel costs. The company has also made limited layoffs since November 2023.
Renesas reached an agreement with the union in early March to postpone company-wide wage increases. The money Renesas saves through this action will be channeled into future investments.
Renesas said the cuts would be limited both inside and outside Japan. Half of the cuts will be to overseas staff, regardless of their position.
In terms of revenue composition, automotive chips accounted for approximately 47% of Renesas‘ revenue, while industrial, infrastructure and Internet of Things (IoT) chips accounted for the rest. As inventory adjustments persist in areas such as industrial chips, Renesas is concerned that the profitability of its solutions will continue to deteriorate.
In a consolidated financial forecast issued in February 2024, Renesas said it was unlikely to provide a reliable forecast for the new fiscal year as the semiconductor industry would remain volatile in the near term. The company only expects consolidated revenue in the first quarter of 2024 to be between 337.5 billion yen and 352.5 billion yen, down about 6 percent from the previous year.
Renesas, on the other hand, continues to make acquisitions. In January, the company announced it would acquire U.S. power semiconductor company Transphorm to gain automot-grade gallium nitride (GaN) and other power semiconductor solutions to benefit its electric vehicle business.
In February, Renesas Electronics said it would buy EDA software provider Altium for A $9.1 billion ($6 billion) and invest in design software for PCBS and other technologies.
Renesas Electronics will also work with partners to build an OSAT plant in India. The Japanese company plans to invest 2 billion yen in the project. In addition, Renesas plans to acquire Sequans Communications of France through a tender offer (TOB). However, Renesas later terminated its acquisition of Sequans Communications due to unanticipated tax liabilities.
Renesas Electronics, a Japanese automotive and industrial chip company, has decided to postpone regular salary increases from April to October this year.
The slow recovery in the semiconductor market prompted Renesas to reduce personnel costs. The company has also made limited layoffs since November 2023.
Renesas reached an agreement with the union in early March to postpone company-wide wage increases. The money Renesas saves through this action will be channeled into future investments.
Renesas said the cuts would be limited both inside and outside Japan. Half of the cuts will be to overseas staff, regardless of their position.
In terms of revenue composition, automotive chips accounted for approximately 47% of Renesas‘ revenue, while industrial, infrastructure and Internet of Things (IoT) chips accounted for the rest. As inventory adjustments persist in areas such as industrial chips, Renesas is concerned that the profitability of its solutions will continue to deteriorate.
In a consolidated financial forecast issued in February 2024, Renesas said it was unlikely to provide a reliable forecast for the new fiscal year as the semiconductor industry would remain volatile in the near term. The company only expects consolidated revenue in the first quarter of 2024 to be between 337.5 billion yen and 352.5 billion yen, down about 6 percent from the previous year.
Renesas, on the other hand, continues to make acquisitions. In January, the company announced it would acquire U.S. power semiconductor company Transphorm to gain automot-grade gallium nitride (GaN) and other power semiconductor solutions to benefit its electric vehicle business.
In February, Renesas Electronics said it would buy EDA software provider Altium for A $9.1 billion ($6 billion) and invest in design software for PCBS and other technologies.
Renesas Electronics will also work with partners to build an OSAT plant in India. The Japanese company plans to invest 2 billion yen in the project. In addition, Renesas plans to acquire Sequans Communications of France through a tender offer (TOB). However, Renesas later terminated its acquisition of Sequans Communications due to unanticipated tax liabilities.
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