The factory, which started wafer production in 1992, is currently producing secure microcontroller wafers for Smart Card applications on 0.35 µm, 0.18 µm and recently 0.15µm process technologies. Over a number of years, there has been significant investment to expand the factory and convert it with new process technologies. Changes in the global semiconductor market are driving demand for products with smaller geometries produced on larger diameter wafers. To remain competitive, Renesas has therefore decided to concentrate its wafer fabrication investments in its bigger production facilities located in Japan, avoiding the larger capital investment required to increase flexibility of the facility to support advanced processes and rapidly changing market needs. Renesas completed a thorough evaluation of all possible options for the future of the Landshut facility as a part of its global strategy, seeking to optimize and utilize its production resources worldwide. During this process, SFH made an alternative business proposal to transform the Landshut facility to an advanced analog pure-play foundry, which Renesas accepted. After the transfer of the fab, Renesas will outsource its products to SFH until December 2009. Furthermore, with 11 sales sites and 4 design sites in Europe mainly concentrated in UK and Germany, Renesas remains committed to the European market. Renesas Technology Europe will enhance their Munich site by moving Renesas‘ European Quality Assurance Centre (EQAC) from Landshut to Munich, to provide high-quality semiconductor products with sufficient technical support. SFH is held and managed by two former RSEL managers and will act as a local pure-play foundry, specializing in analog mixed signal wafer production, providing a flexible approach to customer requirements. Based in Europe, SFH is in a good position to support a broad portfolio of customers there, including those seeking high flexibility and technology customization even in low volumes. In this market, which does not conflict with Renesas, there is considerable demand for analog products available at the Landshut site. Thus, SFH can immediately start production without modifications to the facility, rapidly addressing an existing market demand. www.renesas.com www.lfoundry.com