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

SAN JOSE — Renesas Electronics’ acquisition of Silicon Valley means the chipmaker is poised for growth in the fast-changing semiconductor sector and has prompted the company to build a major tech campus in San Jose.

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

“We are on a journey to transform Renesas,” Renesas Electronics Chief Executive Officer Hidetoshi Shibata said during an interview with this news organization in San Jose at the Renesas campus. Local Renesas were visiting the South Bay to see the operation in person and interact directly with it. Shibata also wanted to thank the employees for their work.

The acquisition has enabled Renesas Electronics to strengthen and diversify its technology portfolio.

Shibata, who is licensed to operate Bullet Train in Japan, says he wants to make sure Rinsas moves quickly to take advantage of the new crop of opportunities that will come from a wider range of equipment. have emerged amid automation.

The “Internet of Things” has dramatically increased the intelligence and capabilities of home appliances large and small, vehicles, motors and power tools. Electric vehicles are also becoming increasingly smart. The cloud is constantly gaining capabilities.

A large Silicon Valley presence—and one that is seamlessly integrated—seems critical for Rensas to achieve the success that Shabata envisions.

“The Bay Area is one of the most important hubs for top talent,” Shibata said. “Silicon Valley is without question a great source of talent.”

To leverage the company’s efforts to drive the company’s successes out of consolidation, company leaders from Shibata share and adopt a corporate philosophy they call TAGIE.

“Transparent, agile, global, innovative and entrepreneurial. This is TAGIE,” said Salish Chittipedi, executive vice president of Ransas Electronics Americas and general manager of the company’s Internet of Things and Infrastructure business unit.

TAGIE’s philosophy is part of the company’s effort to radically change the way it operates now compared to decades past.

“Traditional Japanese corporate culture is very disciplined in its approach and very focused on executing a plan,” said Chittipedi. But perfection is the enemy of progress. We would plan things for a long time and then the market would change. You are following the old plan, but the market is no longer there.

Renesas is no stranger to consolidation: In 2002, Renesas was born from the combination of key parts of the semiconductor units of Japan’s iconic corporations Hitachi and Mitsubishi. Further consolidation came in 2010, when NEC Electronics merged with Renesas.

In Silicon Valley, the acquisitions of Intercell and IDT set the stage for even more changes at Renesas Electronics America, the United States unit of Renesas Electronics.

Renesas aims to harness the go-go mentality and innovative spirit of Silicon Valley.

“The natural behavior and cultural mindset that already exists among people in Silicon Valley is a huge help to other people based in Japan, in what needs to be done to shape TAGIE to succeed in Europe.”

The move also creates operations changes and consolidation that will see Renesas dramatically expand its presence at the company’s emerging local campus in South San Jose.

The campus is located at 6027 Silver Creek in San Jose and is on a large lot with existing buildings and some vacant land.

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

Planning documents show that if the building is built, “research and development and general office use” will be among the main activities on the site.

Chatty Paddy estimates that the company’s San Jose campus currently employs about 400 to 450 employees. But the workforce is expected to reach 2,000 as more employees shift from other locations in Silicon Valley.

A vexing problem that has plagued the semiconductor industry of late is the shortage of semiconductors such as computer chips. But Shibata said during the interview that he believes the problem is diminishing considerably.

“It’s largely behind us,” Shibata said when asked about the state of Chip’s deficit. “It is true that we still see some shortages on select products. But when you compare the available capacity against the overall demand, the tough times are over.”

Shibata predicted that the coronavirus-induced trend toward working remotely and in a distributed workforce is likely to increase demand for Renesas’ expanded products and capabilities.

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

Since the onset of the Corona virus, there have been major changes in behavior.

“People were forced to use all these technological devices just to keep working,” Shibata said. “People are now more aware of using electronic gadgets as well as devices available on the cloud. This will increase the long-term consumption of semiconductors. This provides a sustainable tailwind for our products.”