Renesas Electronics has announced plans to gradually discontinue manufacturing operations at its Takasaki Factory in Gunma Prefecture, Japan. This as the company responds to structural shifts in the semiconductor industry and challenges associated with aging production infrastructure.

The Japanese semiconductor supplier said production at the facility, which operates a 6-inch wafer line, will be scaled down and ultimately halted within the next two to three years. The factory closure will follow after manufacturing activities cease.

According to Renesas, the semiconductor sector is undergoing significant supply chain changes, particularly affecting 6-inch wafer production. The company cited the discontinuation of key production materials, reduced maintenance support for manufacturing equipment, and aging utility facilities as factors that have made continued production of certain products increasingly difficult at the site.

Company Prioritizes Stable Customer Supply

Renesas said it will take steps to minimize disruption for customers during the transition. The company plans to closely evaluate future demand and build appropriate inventory levels to help maintain a stable product supply throughout the phaseout period.

“Renesas has provided a stable supply of products and will continue its efforts to minimize impact on customers,” the company said in its announcement.

The production withdrawal forms part of the company’s broader strategy to strengthen its business foundation while adapting to changing industry conditions.

R&D Activities to Remain and Expand

While manufacturing operations will be discontinued, Renesas confirmed that research and development functions currently based at the Takasaki site will be retained and further enhanced. The existing location and surrounding areas are being considered as primary candidates for future R&D activities.

The company intends to reposition these operations to focus on analog integrated circuits and power semiconductors targeting two of its strategic growth markets: data centers and automotive applications.

“Renesas remains committed to maintaining and strengthening these functions going forward,” the company stated.

The company added that specific details regarding the future structure of the R&D organization and the exact timing of manufacturing discontinuation have yet to be finalized and will be announced at a later date.

Employee Support Measures Planned

Renesas said it aims to preserve employment opportunities for affected workers through reassignment options, internal career opportunities, external career support programs, and other transition measures.

The move reflects the company’s efforts to realign operations with evolving market demands while increasing focus on growth-oriented semiconductor segments. By concentrating resources on advanced R&D and strategic end markets, Renesas aims to strengthen its competitiveness amid ongoing changes across the global semiconductor industry.

03 August 2026