Renesas Technology America

1
Renesas Technology America

• April 2005

2
Merger of Hitachi Mitsubishi Electric
Semiconductor Businesses
3
RTA - Our Mission

• Continuously improve North American semiconductor
  market share on an annual basis (excluding DRAM)
• Increase our North American MCU market share to
  15 by 2010
• Achieve continuous improvement in customer
  satisfaction, as measured by a consistent and
  independent annual survey
• Steadily improve productivity as measured by
  global revenue per employee

4
W/W Semiconductor RankingBased on 2004 Sales
Forecast made in December, 2004
Share
Sales
YoY ()
Strong DSP Sales
1
Intel
15.1
13.7
29.6
2
Samsung
56.1
6.7
14.4
Strong Euro
3
TI
4.6
31.6
9.8
4
Infineon
31.8
4.1
8.9
4 to 7 is VERY close!
5
Renesas
13.5
4.0
8.6
6
Toshiba
4.0
18.2
3.9
8.5



7
STMicro
21.2
3.9
8.4
8
NEC Ele
16.8
2.9
6.3
9
Freescale
22.9
2.5
5.4
10
Philips
25.4
2.5
5.4
Billions of US
The semiconductor market in CY2004 has seen a
year-over-year increase of approx.28, driven by
memory products such as DRAM and flash memory.
However, production adjustments in the Japanese
market for mobile phones and digital consumer
products, where Renesas has focused, has resulted
in Renesas moving down the worldwide
semiconductor ranking. Nevertheless, we believe
that Renesas has kept its strong position in our
focused areas such as automotive semiconductors.
Sourcei-Suppli(Dec./04)
5
W/W MCU RankingBased on 2004 Sales
Share
Sales
YoY ()
1
Renesas
21
22
2,914
2
Freescale
6
13
1,717
3
NEC
11
22
1,430
4
Infineon
46
8
1,090
5
Matsushita
14
7
749
6
Microchip
4.0
24
5
661
7
Toshiba
11
5
652
8
Fujitsu
-12
4
594
9
ST
31
4
466
10
TI
23
3
370
Millions of US
Source Gartner Dataquest March 2005
6
America MCU RankingBased on 2004 Sales
Share
Sales
YoY ()
1
Freescale
0
38
668
2
Microchip
10
11
192
5
NEC
29
7
132
6
Infineon
4.0
33
4
73
7
ST
30
3
61
8
Zilog
11
2
39
9
Philips
(24)
2
35
10
Fujitsu
(18)
2
31
Millions of US
Source Gartner Dataquest March 2005
7
Renesass Position in Semiconductor Industry
MCU
MCU for Car Navi
LCD driver for Color Mobilephone
Application Processor for Mobilephone
21
36
50
80
WW No.1 Share
WW No.1 Share
WW No.1 Share
WW No.1 Share
Flash Memory
HPA for mobilephone(GSM)
Hi Frequency IC (GSM)
MCU with FLASH Memory
1G AG-AND World Fastest (10Mb/sec)
22
41
59
Based onQuantity
MCP for Mobilephone No.1 Share in Japan
WW No.1 Share
WW No.1 Share
WW No.1 Share
Source Renesas Marketing Planning
May, 2004
8
Ubiquitous Market Convergence

Security
RF, Analog
Multi-Media
Connectivity
9
Only 6 Suppliers Annually Generate Revenue Level
Required for Next-Generation Fab ROI
Goldman Sachs AnalysisA Device Maker Needs 7B
in Sales to Justify New Fab -
Electronic Business, Feb 2003
B
Gartner Dataquest March 2004 Revenue