Renesas hit by fall in industrial market

Renesas hit by fall in industrial market

Business news |
By Nick Flaherty

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Renesas saw a fall in overall turnover in 2023 as the fall in the industrial market took hold.

Renesas saw revenue of Y1,469.4 (US$10.2bn), a fall of 2.2% with operating profit of Y390.8bn ($2.61bn).

While the automotive business was up 7.8% to Y695bn ($4.6bn), the figures were pulled down by the industrial and IoT business falling 9.6% to Y746bn ($5bn).

This compares to Y1,500.9bn ($10.05bn) with operating profit of Y424.2bn ($2.85bn) in 2022. Y645.0bn ($4.3bn) came from automotive with Y845bn ($5.66bn) in industrial/Infrastructure/IoT.

The prospects are not positive. 2024 is not starting well, with a midrange forecast of Y345bn, down 4% year on year. This is sown by front end wafer fab utilisation falling to under 60% with inventories growing in automotive and falling in industrial which led to the fall as customers used up their inventory stock. The growing inventories in automotive are consistent with a fall in the market in 2024.

Front end wafer utilisation at Renesas

Front end wafer utilisation at Renesas

Customers are more cautious in the first half, says Hidetoshi Shibata, CEO, (above) who expects the market to pick up in the second half.

The integration of Intersil, Dialog Semiconductor, Celeno and Panthronics are still hitting the overall profits, and the company is also set to acquire GaN pioneer Transphorm later in the year. “This is something we are looking forward to,” said Shibata.

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