Renesas Technology and Powerchip Semiconductor establish a joint venture to design memory products

Tokyo, January 15, 2007- Renesas Technology Corp. and Powerchip Semiconductor announced today that they have signed an agreement to establish a joint venture dedicated to advanced memory device design. According to the agreement, both cooperating companies will provide engineering design resources for the new company. Establishing a new type of joint venture will help both companies solve some of the key issues they are currently facing. General Manager of Renesas Technology's Memory Division

Tokyo, January 15, 2007- Renesas Technology Corp. and Powerchip Semiconductor announced today that they have signed an agreement to establish a joint venture dedicated to advanced memory device design.

According to the agreement, both cooperating companies will provide engineering design resources for the new company. Establishing a new type of joint venture will help both companies solve some of the key issues they are currently facing.

As a system solution provider, Renesas is constantly providing highly advanced and excellent SiP (System in Package) solutions to meet the needs of various markets such as digital consumption and communication to shorten development time. In order to quickly bring high-performance, low-cost SiP solutions to the market, we must be able to design advanced custom embedded memory. This joint venture will strengthen our design capabilities to expand into this important market, "said Shigeru Mori, General Manager of Renesas Technology's Memory Division

Stephen Chen, Senior Vice President and General Manager of Memory Products at Powerchip Semiconductor, said, "Powerchip Semiconductor hopes to strengthen its design resources through this agreement. This agreement will help us expand our product lineup of standard storage devices based on the Powerchip Semiconductor brand and serve as a supplement to the OEM services that will soon become the company's main business

Renesas Technology and Powerchip Semiconductor look forward to the joint venture being able to produce and design new storage devices with enhanced performance at low cost.

Basic Information of Joint Ventures

Established on: February 2007

Investment ratio: Renesas Technology 35%, Powerchip Semiconductor 65%

Business activity: Design of advanced storage devices

Company Name: Vantel Co. Ltd. (Headquarters: Minato Ward, Tokyo)

President: Shigeru Mori

About Renesas Technology Company

Renesas Technology Corp. is one of the global suppliers of leading semiconductor system solutions for the mobile, automotive, and personal computer/AV (audio and video) markets, and is also a leading microcontroller supplier in the world. The company is also a leading supplier of LCD driver integrated circuits, smart card microcontrollers, radio frequency integrated circuits (RF-IC), high-power amplifiers, mixed signal integrated circuits, system on chips (SoC), system in packages (SiP), and other products. As a joint venture established in 2003 by Hitachi Ltd. (Tokyo Stock Exchange code: 6501, New York Stock Exchange code: HIT) and Mitsubishi Electric Corporation (Tokyo Stock Exchange code: 6503), Renesas Technology achieved a comprehensive sales revenue of 906 billion yen in the fiscal year 2005 (as of the end of March 2006). Renesas Technology is located in Tokyo, Japan and has a manufacturing, design, and sales network in approximately 20 countries worldwide, with approximately 26200 employees. For further information, please visit http://www.renesas.com

About Lijing Semiconductor Company

Lijing Semiconductor Company (5346. TWO) was established in December 1994 in Hsinchu Science Park, Taiwan, dedicated to producing and selling DRAM (Dynamic Random Access Memory) products. In 1998, Lijing Semiconductor went public. By 2006, Lijing had three 12 inch (300mm) factories and one 8-inch (200mm) factory, with over 6200 employees and an investment of over NT $62 billion. Since its establishment, Lijing has established long-term strategic partnerships with high-tech companies in Japan. Through strategic partnerships with Elpida and Renesas, Powerchip has developed ******* products including DRAM, flash memory, system LSI, and wafer products. Lijing achieved an annual revenue of NT $51.061 billion in 2005. For further information, please visit http://www.psc.com.tw