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The CEO of Renesas Electronics stated that the global semiconductor industry needs to adjust its operations and supply chains to adapt to the “business as usual” world of the recovery of Covid-19.
Hidetoshi Shibata, one of the world’s largest automotive chip suppliers, told the Financial Times that the outbreak of a new pandemic has also posed a challenge to the Japanese group’s business. Acquired Dialog Semiconductor for 4.8 billion euros: Since the virtual agreement was reached in February, he has not personally met or visited any Apple supplier executives and offices.
“We are very busy now, and frankly, there may be a sense of integration over all of this,” Shibata said.
this The rapid spread of Covid-19 Caused serious damage to the global supply chain in Southeast Asia, prompting Toyota, the world’s largest car manufacturer, to reduce Global production fell by 40% in September. The industry has been hit by a global shortage of semiconductor components, and Shibata warned that normalization of this situation is “quite distant.”
“We need to think about how to coexist with Covid,” he said. “This means doing things in a different way, instead of stopping operations and quarantining every time new cases increase, as we are currently witnessing in Malaysia and Vietnam.”
At the time of the outage, Renesas’ mission was to integrate Dialog—the third major acquisition in four years—while facing strict travel restrictions. “I’m both excited and worried,” Shibata said. “We acquired Dialog and haven’t even been to the company once, so I want to make sure that there are real offices and personnel as soon as possible.”
Other Japanese companies are facing similar challenges. After the pandemic restricted their ability to conduct actual due diligence, many Japanese companies are eager to resume looking for overseas acquisition opportunities.
Despite the interference, when Renesas completed its acquisition of Dialog last week, it still showed 39 new products that combined the technologies of the two companies.This deal is part of Shibata attempt As trade tensions between the United States and China created geopolitical complexities, the group expanded its investment portfolio beyond automotive chips and expanded its geographic footprint.
JPMorgan Chase analyst Masashi Itaya said after his speech at Renesas Electronics last week: “We believe that great efforts from the beginning may lead to faster-than-target sales synergy in the fields of industry, infrastructure and the’Internet of Things’. effect.”
The Dialog deal will also allow Renesas to inject fresh blood into its automotive chip business and adopt new engineering tools to adjust its products to the digital age. As part of this, Shibata has appointed Vivek Bhan, former senior vice president of Dialog, as the second senior executive of the Renesas Automotive Solutions business.
“So far, our automotive department is mainly operated by traditional Renesas Electronics, but we hope to accelerate from here to modernize the automotive sector,” he added.
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