Renesas Electronics' development strategy in China
Recently, president of Renesas Elctronics China Tomomitsu Maoka said in an interview with the media: "With the vigorous development of the Chinese market and the growing importance of Renesas Electronics, senior leaders of Renesas Electronics Headquarters believe that we must take advantage of China's development opportunities and do something. There are not many people who have such ideas, and I am one of them."
Following the globalization plan, Renesas Electronics completed the acquisition of Intersil in 2018. At the same time, the headquarters attaches more and more importance to China, which also makes Tomomitsu Maoka's ideas about localization and innovation more smoothly.
On May 26, 2017, Renesas Electronics and Greatwall Motor announced a deep strategic cooperation on the development of new energy vehicles and autonomous vehicles; on March 14, 2018, Renesas Electronics announced cooperation with Alibaba Cloud Technology Co., Ltd. Accelerate the development of the Internet of Things solution based on the Ali Internet of Things operating system AliOS; on June 29, 2018, Renesas Electronics cooperated with Baidu Cloud to provide Internet of Things solutions.
In the past years, Renesas Electronics has reached a series of close cooperation with well-known Chinese companies such as Greatwall Moto, Alibaba, Baidu and China Household Appliances Research Institute in the industrial chain, further promote its development of cutting-edge technologies such as automotive and the Internet of Things.
Driven by China's 2025 plan, the entire Chinese industrial market is undergoing rapid transformation. Tomomitsu Maoka believes that the industrial ecological environment is fragmented and completely different from the ecological structure of the automotive. In the automotive field, Renesas Electronics' strategy is to establish a direct relationship with OEMs. If OEMs choose Renesas Electronics, then Tier1 parts manufacturers will naturally cooperate with Renesas Electronics, and the business will be naturally expanded. However, in industrial applications, due to industrial structure, most customers need customized products to achieve differentiation, so how to help customers achieve more personalized solutions is the most important for industrial customers.
“At present, at least 80% of the equipment in most high-end factories in China comes from Japan or Europe. However, with the advancement of China’s 2025 plan, Chinese local equipment manufacturers will rise and grow rapidly, which gives us a lot of imagination and development motivation." Tomomitsu Maoka said. “The most important thing is to fully understand the customer's needs, and then provide the corresponding solutions, as well as a clear roadmap for product upgrades in the future, and have medium- and long-term communication and commitment with customers, especially industrial customers, so as to continuously enhance mutual trust.”
Renesas Electronics divides the industrial sector into three smart sectors, namely smart facilities, smart factories and smart homes. Smart homes are divided into office automation, building automation, instrumentation and information and communication technology products, while smart factories are mainly industrial automation. In the smart home field, it includes both household appliances and medical care. In 2018, Renesas Electronics will focus on the industrial market, Renesas Electronics has strong industrial automation, white goods and social infrastructure, and will also strive for emerging technology markets including air purifiers, smart meters and other technologies. .
"According to my observation, China's intelligent market has several characteristics. The first is high popularity, including smart security, shared bicycles, etc., which are widely distributed all over the world. Second, new business models such as the sharing economy are booming in China, which indicates that the Internet of Things has a suitable business environment; thirdly, China has become one of the world's largest smartphone markets, with the foundation of mobile payment, many IoT terminals can be combined with mobile applications. Fourth, China with the world's largest population and largest market, it has an unparalleled consumer base," Tomomitsu Maoka said.
In addition to innovation for intelligence, Renesas Electronics also has a range of support for many small and medium-sized Chinese customers. For these OEMs, analyze their strengths and needs, and provide them with more support and services. Renesas Electronics China's support team is not only from the mainland, but also can allocate global resources to serve Chinese customers. At the same time, Renesas Electronics will also adjust the functions of various outlets in China according to the development of the Chinese market, in order to integrate resources and better adapt to the Chinese market.
Renesas Electronics China now has 50% of its sales from local Chinese customers, a 20% increase from a year ago, far exceeding the global growth rate of Renesas Electronics. In this regard, Tomomitsu Maoka emphasized: "Now the Chinese government is emphasizing autonomy and localization, which is in line with Renesas Electronics' China development strategy."