June 27, 2013 — Renesas Electronics Corporation (Representative Director, Chairman and CEO, Hisao Sakuta, hereafter "Renesas") and its wholly-owned subsidiary Renesas Mobile Corporation (Chief Executive Officer: Hideaki Chaki, hereafter "RMC") have been reviewing the direction of its mobile business since this March. Renesas and RMC today announced that Renesas group ("the Group") decided the direction.
1. Reason of Intended Business Stoppage
Renesas acquired the wireless modem technology and its business unit from Nokia Corporation of Finland in November 2010; formed Renesas Mobile Europe Oy ("RME"), Renesas Mobile India Private Limited ("RMI"), and Renesas Tongxinjishu (Beijing) Co., Ltd., also known as Renesas Telecommunication Technology Ltd. Corporation ("RMCH"); established RMC as their parent company; and has produced the 4th generation wireless modem ("LTE Modem") developed by RME, RMI, and RMCH (collectively the "RME Group"). However, the Group decided today to stop developing activities and sales expansion of the LTE Modem, and to work towards the closure of the RME Group, considering tougher-than-expected market conditions surrounding it, and to further concentrate its managerial resources of the Group on its core business.
The Group will continue to supply modem products older than 4th generation, or already in mass production and supplied to its customers. In addition, the Group is committed to continue its operation related to car information systems and industrial equipment business, and further strengthen them as its core business.
The outline of the RME Group which will be affected by this decision and the schedule is as stated below.
2. The Outline of Affected Companies
(1) Renesas Mobile Europe Oy
(2) Renesas Mobile India Private Limited
(3) Renesas Tongxinjishu (Beijing) Co., Ltd. (Renesas Telecommunication Technology Ltd. Corporation)
3. Schedule
| (1) Resolution of Board of Directors (Renesas and its associated companies) | June 27, 2013 |
|---|---|
| (2) Intended Date for stoppage of Business *1 (Target Date) | Tentative: December end, 2013 |
*1) It stands for stopping of their business operation. The closing date of legal entities etc. is yet to be determined.
4. Outlook
It is uncertain at this time what impacts this decision will have on the Group’s consolidated financial performance in the current fiscal year and after, but we will make an announcement as soon as they are determined if important impacts are expected.
The content in the press release, including, but not limited to, product prices and specifications, is based on the information as of the date indicated on the document, but may be subject to change without prior notice.