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Renesas Electronics Targets Significant Sales Growth and Workforce Expansion in India

Aiming for up to 15% of total sales by 2030, Renesas plans major investments and staffing increases to tap into India's booming industrial and tech sectors
Japan
r 6723.TSE Blue Chip 150 Semicon 75 Tech 350
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Renesas Electronics, a prominent Japanese chipmaker, is gearing up to substantially increase its market presence in India, setting an ambitious target to raise its sales in the country to between 10% and 15% of its total revenue by 2030. This marks a significant leap from the less than 5% contribution in 2022, driven by India’s fast-growing economy and burgeoning industrial equipment and technology sectors.

CEO Hidetoshi Shibata announced the company’s strategic plans during an online briefing, highlighting Renesas’ intent to expand its workforce in India to as many as 1,000 employees by 2025, a dramatic increase from the approximately 50 workers in 2019. This move is partly in response to the software engineer shortage in Japan and aims to leverage the rich talent pool from India’s top educational institutions, including the prestigious Indian Institutes of Technology (IITs).

Renesas will focus on delivering products that integrate its leading microcontroller technology with analog semiconductors, targeting both small and medium-sized enterprises (SMEs) and larger corporations. This product strategy is designed to cater to the diverse and expanding demands of India’s industrial and tech markets.

The company’s revenue for the year ending December 2023 was 1.46 trillion yen ($9.4 billion), reflecting a 2% decline from the previous year. Despite this dip, Renesas is optimistic about its growth prospects in India, bolstered by its 2022 partnership with Tata Group. This collaboration has already led to the establishment of a joint development center for chip design and development.

Furthermore, Renesas plans to start operations at a chip assembly and testing plant through a joint venture with an Indian company by 2026. This facility is expected to enhance the company’s capabilities in meeting the local demand and strengthen its position against global competitors such as Advanced Micro Devices (AMD), which are also expanding their footprints in India.

As Renesas continues to forge partnerships and invest in local talent and infrastructure, it positions itself to play a pivotal role in India’s rapidly evolving semiconductor landscape, capitalizing on the country’s robust economic growth and technological advancements.

 

 

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