Renesas Electronics has signed an agreement to transfer its high-power amplifier business to Murata Manufacturing.
The deal, which also includes the Nagano manufacturing site, will be completed by February 1, 2012.
The business transfer was approved at the Board of Directors on October 31, 2011, and is subject to applicable regulatory approvals.
According to Renesas, the decision to divest the business which supplies power amplifiers to the mobile phone market reflects a change in the market toward what the firm called "one-stop module and platform solutions that that incorporate power amplifiers with RF components, such as filters and switches.
"In light of these changing business environments, the company has been facing the needs to study and implement measures to quickly respond to the demand for a one-stop module that incorporates a front-end module (FEM) to further strengthen its business structure," said Renesas.
Renesas has reported Q3 results which reflect a continuing weakness in the semiconductor market. Sales fell 17.6% in the quarter and it reported a Q3 net loss of 8.8 billion yen ($111m), an improvement on Q2 but now better than Q3 in 2010.
The company still has production delays due to the Japanese earthquake and tsunami in March.