Renesas to withdraw from microwave semiconductor device business

Renesas Electronics has announced that it will withdraw from the microwave semiconductor device business, instead focusing on optoelectronics devices (photocouplers, laser diodes and photodiodes) among the compound device business.

While Renesas has been working to boost the performance of the compound device business, the company anticipates that it will become increasingly difficult to maintain profitability in the microwave semiconductor device segment due to the shrinking size of the market as a result of the incorporation of peripheral component functionality into system-on-chip (SoC) devices, as well as falling prices caused by the emergence of competing device manufacturers. Meanwhile, the optoelectronics segment of the compound device business is showing improved business performance due to manufacturing-related structural reforms and continuing strong market growth.

In light of this situation, Renesas intends to withdraw from the microwave semiconductor device business in order to focus on optoelectronics devices. The company will no longer develop microwave semiconductor devices and will discontinue production and supply of devices already in mass production within approximately two years, following consultation with customers.

Renesas will continue to focus on photocouplers for industrial applications while expanding its business by accelerating development of high-speed laser diodes and photodiodes for optical communication applications to accommodate the rapidly growing data transfer capacity required by data centres and base stations due to factors such as the popularisation of smartphones. In addition, the company will continue to work on its Business Continuity Management (BCM) to maintain its system for ensuring consistent and stable supply of products.