1. Renesas Technology America
April 2005

2. Merger of Hitachi & Mitsubishi Electric Semiconductor Businesses
Renesas Technology Corp.
Flash/SRAM
(System Memory)
MCU, ASIC, ASSP
RF Modules, Mixed Signal Devices
MCU, IC Cards, LCD Drivers
ASIC, Logic
Elpida
(NEC, Hitachi, Mitsubishi, PSC)
DRAM

3. RTA - Our Mission
Continuously improve North American semiconductor market share on an annual basis (excluding DRAM)
Increase our North American MCU market share to 15% by 2010
Achieve continuous improvement in customer satisfaction, as measured by a consistent and independent annual survey
Steadily improve productivity as measured by global revenue per employee

4. Source： i-Suppli(Dec./04)
W/W Semiconductor Ranking Based on 2004 Sales Forecast made in December, 2004
Sales
YoY (%)
Share
Strong DSP Sales 1
Intel
29.6
15.1%
13.7% 2
Samsung
14.4
56.1%
6.7%
Strong Euro 3 TI
9.8
31.6%
4.6% 4
Infineon
8.9
31.8%
4.1%
4 to 7 is VERY close! 5
Renesas
8.6
13.5%
4.0% 6
Toshiba
8.5
18.2%
3.9%
4.0% 7
STMicro
8.4
21.2%
3.9% 8
NEC Ele
6.3
16.8%
2.9% 9
Freescale
5.4
22.9%
2.5% 10
Philips
5.4
25.4%
2.5%
Billions of US$
The semiconductor market in CY2004 has seen a year-over-year increase of approx.28%, driven by memory products such as DRAM and flash memory. However, production adjustments in the Japanese market for mobile phones and digital consumer products, where Renesas has focused, has resulted in Renesas moving down the worldwide semiconductor ranking. Nevertheless, we believe that Renesas has kept its strong position in our focused areas such as automotive semiconductors.
Source： i-Suppli(Dec./04)

5. W/W MCU Ranking Based on 2004 Sales
YoY (%)
Share 1
Renesas
2,914
21%
22% 2
Freescale
1,717 6%
13% 3
NEC
1,430
22%
11% 4
Infineon
1,090
46% 8% 5
Matsushita
749
14% 7% 6
Microchip
661
24% 5%
4.0% 7
Toshiba
652
11% 5% 8
Fujitsu
594
-12% 4% 9 ST
466
31% 4% 10 TI
370
23% 3%
Millions of US$
Source： Gartner Dataquest March 2005

6. America MCU Ranking Based on 2004 Sales
YoY (%)
Share 1
Freescale
668 0%
38% 2
Microchip
192
10%
11% 3
Renesas
37%
10%
177 4 TI 9%
15%
163 5
NEC
132
29% 7% 6
Infineon 73
33% 4%
4.0% 7 ST 61
30% 3% 8
Zilog 39
11% 2% 9
Philips 35
(24)% 2% 10
Fujitsu 31
(18)% 2%
Millions of US$
Source： Gartner Dataquest March 2005

7. Renesas’s Position in Semiconductor Industry
MCU
MCU for Car Navi
Application Processor
for Mobilephone
LCD driver for
Color Mobilephone
21%
36%
80%
50%
ＷＷ No.1 Share
ＷＷ No.1 Share
ＷＷ No.1 Share
ＷＷ No.1 Share
MCU with FLASH Memory
Flash Memory
HPA for mobilephone(ＧＳＭ)
Hi Frequency IC (ＧＳＭ)
１G AG-AND
World Fastest
(10Mb/sec)
22%
41%
59%
Based on Quantity
MCP for Mobilephone
No.1 Share in Japan
ＷＷ No.1 Share
ＷＷ No.1 Share
ＷＷ No.1 Share
Source: Renesas Marketing ＆Planning
May, 2004

8. Ubiquitous Market Convergence
Mobile
Automotive
Security
Multi-Media
RF, Analog
Connectivity
Digital consumer electronics
Network and PC

9. Only 6 Suppliers Annually Generate Revenue Level Required for Next-Generation Fab ROI
Goldman Sachs Analysis: “A Device Maker Needs $7B in Sales to Justify New Fab” Electronic Business, Feb 2003
$ B
Gartner Dataquest March 2004 Revenue