Tech company’s deals leave it poised for growth, San Jose expansion

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SAN JOSE — A Silicon Valley acquisition push by Renesas Electronics means the chipmaker is poised for growth in the rapidly changing semiconductor industry and has prompted the company to create a large tech campus in San JOSE. Joseph.

Japan-based Renesas Electronics has in recent years completed the purchase of two Silicon Valley companies, San Jose-based Integrated Device Technology and Milpitas-based Intersil. In 2021, Renesas acquired the English company Dialog Semiconductor.

“We are embarking on a journey to transform Renesas,” said Hidetoshi Shibata, CEO of Renesas Electronics during an interview in San Jose with this news agency at the Renesas campus. was visiting South Bay for in-person insight and direct interaction with the local Renesas operation. Shibata also wanted to thank the employees for their work.

Acquisitions have allowed Renesas Electronics to strengthen and diversify its technology portfolio.

Shibata, who is licensed to drive bullet trains in Japan, says he wants to be sure Renesas will act quickly and with agility to take advantage of a new generation of opportunities that have sprung up amid growing automation. many devices.

The “Internet of Things” has dramatically increased the intelligence and capabilities of small and large household appliances, vehicles, motors and power tools. Electric vehicles are also getting smarter. The cloud is steadily gaining in capacity.

A larger presence in Silicon Valley – and seamlessly integrated – appears to be crucial for Renesas to achieve the success Shibata envisions.

“The Bay Area is one of the most important hubs for advanced, high-level talent,” Shibata said. “Silicon Valley is unquestionably one of the main sources of talent.”

To support the company’s efforts to drive success from consolidations, Shibata’s corporate executives embrace and embrace a business philosophy they call TAGIE.

“Transparent, agile, global, innovative and entrepreneurial. It’s TAGIE,” said Sailesh Chittipeddi, executive vice president of Renesas Electronics America and general manager of the company’s Internet of Things and Infrastructure business unit.

TAGIE’s philosophy is part of the company’s desire to significantly change its current operation compared to past decades.

“Traditional Japanese business culture is very disciplined in its approach and very focused on executing a plan” to perfection, Chittipeddi said. “But perfection is the enemy of progress. We would plan things for a long time and then the market would change. You are running the old plan, but the market is gone.

Renesas is no stranger to consolidation: in 2002, Renesas was born from the combination of key segments of the semiconductor units of legendary Japanese companies Hitachi and Mitsubishi. Further consolidations appeared in 2010, when NEC Electronics merged with Renesas.

In Silicon Valley, the acquisitions of Intersil and IDT paved the way for even more change at Renesas Electronics America, the US unit of Renesas Electronics.

Renesas aims to harness the dynamic mentality and spirit of innovation of Silicon Valley.

“The natural behavioral pattern and cultural mindset that already exists among the people of Silicon Valley is a great help in enabling others based in Japan, Europe to embody TAGIE in order to succeed. “,

The moves have also produced changes and consolidations in operations through which Renesas will significantly expand its presence in an emerging local campus for the company in South San Jose.

This campus is located at 6027 Silver Creek in San Jose and occupies a large site that contains vacant land as well as existing buildings.

Earlier this year, Renesas Electronics America presented very preliminary plans to San Jose officials regarding the possibility of developing a new building totaling 124,000 square feet.

“Research and development and general use of office space” would be among the site’s key activities if the building were to go ahead, planning documents show.

About 400 to 450 employees currently work at the company’s campus in San Jose, Chittipeddi estimated. But that workforce is expected to grow to 2,000 as more employees move from other Silicon Valley locations, he said.

A persistent problem that haunts the semiconductor industry lately is the shortage of computer chips such as semiconductors. But Shibata said in the interview that he thinks that problem is easing significantly.

“That’s largely behind us,” Shibata said when asked about the state of the chip shortage. “It is true that on certain selected products, we are still seeing shortages. But when you compare available capacity to overall demand, the hard times are over. »

The coronavirus-influenced trend of working remotely and within a distributed workforce looks likely to keep demand high for Renesas’ growing range of products and capabilities, Shibata predicted.

“Before COVID, maybe only a relatively small group of people were sophisticated and savvy with technology,” Shibata said.

The outbreak of the coronavirus has triggered major behavioral changes.

“People have been forced to use all these technological devices to just keep working,” Shibata said. “People are now more familiar with using electronic gadgets as well as the tools available on the cloud. This will cause the long-term consumption of semiconductors. This provides a sustained tailwind for our products.

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