Change of style in Japanese chip firms allows more independent management

Recently liberated from the big company environment, Japan’s independent semiconductor manufacturers are taking on a new management style.

During the Japanese semiconductor industry’s re-organisation in the first years of this decade, three independent semiconductor manufacturers have been established in Japan: Elpida, the amalgamation of the DRAM-making operations of Hitachi and NEC; Renesas Technology, the amalgamation of the semiconductor businesses of Hitachi and Mitsubishi; and NEC Electronics the spun-off semiconductor business of NEC.

“The Japanese semiconductor players are now more focused on specifics, that will be a positive fact for the Japanese semiconductor industry,” Dr Hajime Sasaki, chairman of NEC, told EW, “it’s part of a global trend to move to more dedicated players like Infineon, Motorola and Agere.”

At Renesas, now the world’s third largest semiconductor company, the management is enjoying its independence. “From the business management point of view it’s very good,” said Sartoru Ito, president of Renesas Technology, “when you’re inside a heavy engineering company, being able to discuss semiconductors is difficult, and not having control of the final decision-making is difficult. Now it’s much easier to get quicker decisions. Not having to worry about HQ means we can focus on our customers.”

Agreeing with Ito, Sony’s Dr Tsugio Makimoto, formerly CEO of Hitachi’s semiconductor division, said: “Hitachi is dominated by heavy engineering people who like predictable returns, not the erratic situation of the semiconductor industry. It’s a very big problem to convince atomic power generating people why you need to invest in semiconductors.”