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Renesas Technology is to undertake a major restructuring of its semiconductor manufacturing operations as well as a workforce reduction of approximately 2,500 tempory workers to reduce operating costs. Renesas expects a substantial reduction in net sales and income for its FY2009.

The Company said it would stop production of diodes and transistors on its 5-inch lines at its Kofu manufacturing complex while shifting production to 6-inch lines by the end of FY2009. Its 8-inch lines at Kofu would be expanded to accommodate production consolidation.

Other 5-inch lines at its Takasaki facilities (pictured) will also closed down. Products such as transistors and linear devices will be migrated to 6-inch wafer production by the end of FY2010. Products currently manufactured on the 6-inch wafers will be moved to 8-inch wafer production lines at other sites, the company said.

MCUs and mixed signal devices currently produced at its 6-inch Kochi site will be consolidated on one production floor.

Its manufacturing subsidiary, Renesas Northern Japan Semiconductor will stop production on an unspecified number of 6-inch production lines during FY2009, while its Gunma back-end facility producing diodes and linear devices is currently evaluating production rationalization.