Renesas To Outsource IT Functions

SAN JOSE, Calif. — Seeking to cut costs, Japan’s Renesas Technology Corp. said it has decided to outsource its IT functions and establish a new joint company with Accenture, Hitachi Ltd., and Mitsubishi Electric Corp.

The new company will provide IT outsourcing services to Renesas, formerly the non-DRAM businesses of Hitachi and Mitsubishi.

Since its establishment in 2003, Renesas (Tokyo) has been working with Accenture, Hitachi and Mitsubishi to unify and integrate its IT systems, which Hitachi and Mitsubishi operated separately.

In January 2006, a fully-integrated system will be activated and is expected to provide a more efficient IT function for Renesas' semiconductor business.

Renesas said it will utilize the new company's IT systems to improve efficiency of services ranging from planning to management in manufacturing, procurement and logistics at each of sales offices and manufacturing and production facilities both in and outside of Japan.

Renesas is looking for ways to cut cost. In November, the chip maker reported that sales for the first half of its 2005 fiscal year fell 10 percent to 439.3 billion yen (about $3.7 billion), with a net loss of 2 billion yen (about $17 million). The company expects full fiscal year sales to fall 8 percent short of its original target along with a net loss.