His appointment follows the resignation of resignation of current CEO Bunsei Kure, whose resignation is being attributed to the financial underperformance of the company and to the costs of acquiring both Intersil and IDT - around $10 billion. The $6 billion takeover of IDT was followed by R&D cuts and lay-offs at Renesas and there has been criticism that Bure over-paid for IDT
Shibata joined Renesas in 2013 and as Executive Vice President, Member of the Board and CFO, led a series of structural reforms, such as personnel cost reductions, and the reorganisation of production sites. After the structural reforms, he was instrumental in leading the acquisitions of two U.S.-based semiconductor companies, Intersil and Integrated Device Technology.
According to the Nomination Committee, an advisory body reporting to the Board of Directors, Shibata was appointed due to his experience in leading structural reforms which will, "enable him to leverage the lessons learned to take effective measures quickly in order to break away from the current unfavourable business performance and stock price stagnation. When considering the company's rebuilding and further growth amidst the rapidly changing semiconductor industry, we determined that he is best qualified to be the next President and CEO."
“Whilst we face short-term challenges that require concerted efforts across the company, I believe that Renesas is well placed in our focus markets to continue to create innovative, sustainable solutions for our customers and society at large and to restore growth and corporate value for all the company’s stakeholders," said Shibata.
