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NEC reorganisation aims at No.1 spot for auto MCUs |
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Feb 23, 2006 at 09:41 AM |
 NEC Electronics plans to become the world's number 1 supplier of automotive microcontrollers (MCUs) by 2010. The company's goal is to achieve a 20 percent market share, or approximately 140 billion yen in sales of automotive MCUs, by the target date. Streamlined manufacturing and enhanced quality control functions will be vital in achieving this, NEC believes.
The upgrade at Roseville, California, to 200mm, 0.15micron wafer fabrication is designed to support this plan. The pilot line is due to be established by September 2006, and volume production will be steadily ramped up with the goal of surpassing 6000 wafers per month by 2008. NEC Electronics also produces automotive MCUs at its facility in Kumamoto, Japan.
Equipment for the new 200mm line in Roseville will be transferred from NEC Electronics' existing production facility in Sagamihara, Japan. The transfer of equipment rather than the purchase of new equipment will provide the benefit of establishing the new line at minimal cost. The line at Sagamihara will be discontinued, allowing NEC Electronics to eliminate some operating costs.
NEC Semiconductors Singapore will provide test and assembly services for US and European automotive MCU customers. Production capacity at the Singapore facility will increase 65 percent, reaching 10 million units per month.
NEC Electronics currently operates a test and assembly facility at NEC Semiconductors Ireland as well, but due to high operating costs, the company plans to cease production and discharge the 350 employees by September 2006. The majority of the equipment used in Ireland will be transferred to Singapore.
NEC Electronics is increasing resources at the development centres in the United States and Europe to deliver design support to automotive customers. In the United States, NEC Electronics America's Dallas Design Center, which formerly conducted development of ASICs, has been restructured to focus on the design and development of automotive MCUs. NEC Electronics Europe will also strengthen its automotive MCU design at its European Technology Centre in Düsseldorf, Germany.
Since quality control is critical for the automotive market, NEC Electronics will add a new European Quality Centre in Düsseldorf in April 2006. This will merge quality assurance activities currently conducted there with quality management efforts at NEC Semiconductors Ireland.
NEC Electronics also reported its third quarter 2005-2006 results. Sales were 162,688 million yen resulting in net loss of 2555 million yen. In 2005-2005, sales of 165.320 million yen produced a net profit of 481 million yen.
By Dr Mike Cooke
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