Nikkei · Automotive chips · World No.2 in auto MCUs

Renesas Electronics

World No.2 in automotive microcontrollers (MCUs) and No.3 in MCUs overall, with ~¥1.47T ($10B) revenue in 2024. It supplies the dozens-to-hundreds of MCUs per car to automakers and industrial OEMs like Toyota, with its R-Car SoC selected for the new RAV4 ADAS control unit. It outsources leading-edge logic to TSMC and is expanding into power, investing in SiC via Wolfspeed.

6723.T Updated Jul 12, 2026 4 AI consumers· 1 recurring

Per the valuechain.wiki graph, Renesas Electronics is directly linked to 4 companies (3 supply, 1 revenue relationships) and reaches 37 companies within two hops; the links are backed by 9 dated sources, 4 of them primary filings (as of 2026-07-12).

Annual return · 2026-07-10'21+8.2%'22+2.4%'23+88%'24-13.6%'25+23.8%YTD+84.9%
Money inindustrial · IoT OEM (undisclosed)automotive & industrial OEM (undisclosed)Toyota Motor Corporation
Renesas ElectronicsAutomotive MCU and SoC
Money outTSMCRevenue ~$10BSynopsysCadence Design Systemsfront-end equipment (undisclosed)

Financials & Segments

  • Total revenue · Automotive MCU and SoC
  • Segments · Automotive MCU and SoC

Revenue from

  • industrial · IoT OEM (undisclosed) Medium confidence
    Supplies MCUs and SoCs to industrial and IoT OEMs — an industrial revenue axis complementing automotive.
    Confirms EN Renesas Electronics Published Feb 5, 2026: Renesas' Consolidated Financial Results for the Year Ended December 31, 2025
    Confirms EN Renesas Published Feb 4, 2026: Renesas FY2025 Consolidated Financial Results
  • automotive & industrial OEM (undisclosed) Medium confidence
    Supplies automotive MCUs and SoCs to automotive/industrial OEMs like Toyota — demand that grows as electrification/ADAS raise chip content per vehicle.
    Confirms EN Renesas Published Feb 4, 2026: Renesas FY2025 Consolidated Financial Results
    Confirms EN Renesas Published Mar 1, 2025: Renesas Financial Report 2024
  • Toyota Motor Corporation Medium confidence
    Renesas supplies automotive semiconductors to Toyota, with its R-Car V4H selected for the new RAV4 ADAS control unit. Automotive is Renesas's largest end market.
    Confirms EN Renesas Newsroom Published Feb 24, 2026: Renesas R-Car V4H ADAS SoC Selected for Toyota RAV4 Model
    Mentions EN Renesas Published Feb 4, 2026: Renesas FY2025 Consolidated Financial Results

Pays to

  • TSMC Medium confidence· Revenue ~$10B · 2024 · annual revenue
    Outsources leading-edge automotive SoC (R-Car etc.) foundry to TSMC — a fab-lite structure securing leading-edge competitiveness.
    Confirms JA EDINET / company IR Published Mar 25, 2026: Annual Securities Report (EDINET)
    Confirms EN Renesas Published Mar 1, 2025: Renesas Financial Report 2024
    Confirms KO InfoStock Daily Published Jan 1, 2025: Renesas eyes share gains via SiC
  • Synopsys Medium confidence
    Pays for synopsys EDA tools and IP licenses.
    Confirms EN SEC EDGAR Published Dec 22, 2025: Synopsys FY2025 annual report (10-K)
    Confirms EN SemiAnalysis Published Sep 1, 2025: EDA Market Primer
  • Cadence Design Systems Medium confidence
    Pays for cadence EDA tools and IP licenses.
    Confirms EN SEC EDGAR Published Feb 19, 2026: Cadence FY2025 annual report (10-K)
    Confirms EN SemiAnalysis Published Sep 1, 2025: EDA Market Primer
  • front-end equipment (undisclosed) Low confidence
    Parts, materials and R&D (undisclosed).
    Confirms EN Renesas Published Mar 1, 2025: Renesas Financial Report 2024

Value-chain ripple (2 tiers)

Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.

CompanyChain'21'22'23'24'25YTD
Mazda Motorlead2+18.8+22.8+81.1-39+17.3-3.2
Toyota Motor Corporationlead1+58.1-13.4+63+1.8+21.8-18.2
Renesas Electronicsnode+8.2+2.4+88-13.6+23.8+84.9
TSMCbenef1+12.1-36.7+42.3+92.6+55.9+43.6
SUMCO Corporationbenef2-4.3-3.9+21.3-48.1+41.7+225.8
GlobalWafersbenef2+26.9-29.9+14.3-39+48.9+171.6
Applied Materialsbenef2+83.6-37.5+68+1.1+59.6+135
Lam Researchbenef2+53.7-40.7+88.6-6.8+139.2+105
Onto Innovationbenef2+112.9-32.7+124.6+9-5.3+103.6
KLAbenef2+68-11.2+56+9.4+94.5+91
SCREEN Holdingsbenef2+40.7-13.2+220.1-24.1+84.9+86.3
Teradynebenef2+36.8-46.3+24.8+16.5+54.4+85.9
Resonacbenef2-2.6-4+37.5+30.3+137.9+80.4
Tokyo Electron (TEL)benef2+40.4-14.5+89.8-4.4+61.6+78.2
Qnity Electronicsbenef2·····+76.3
Entegrisbenef2+44.6-52.5+83.5-17.1-14.6+72.8
ASMLbenef2+64.1-30.5+39.9-7.7+55.8+68.6
Global Unichipbenef2+21.4+67.6+99.4-13.7+101.4+66.4
BESIbenef2+33.7-6.1+121.8-9.3+35+56.2
Fujimi Incorporatedbenef2+64.7-1.6+40.4-24.2+28.4+54.6
Shin-Etsu Chemicalbenef2+6.3+3.1+57.8-15.6+7.6+44
Tokyo Ohka Kogyo (TOK)benef2-2.7-3+63.8+4.3+111.5+42.9
Ebarabenef2+58.1+2.3+76.1+41+84+32.3
ASM Internationalbenef2+44.2+2.9+68.7+10.3+25.9+28.8
Lindebenef2+33.4-4.4+27.7+3.2+3.2+25.1
Cadence Design Systemsbenef2+36.6-13.8+69.6+10.3+4+22.9
Lasertecbenef2+78.9+2.4+57-60.6+138.9+22.4
Advantestbenef2+17-2.3+155.7+49.5+196+17.1
Air Liquidebenef2+14.1+7.9+20.9+8.5-4.8+12.5
Disco Corporationbenef2-6.6+27.7+218.5+11.6+49.6+10.2
EO Technicsbenef2+7.6-28.2+130.5-16.2+163.2+0.7
HPSPbenef2··+216.5-30.4+54.7-4.5
Synopsysbenef2+42.1-13.4+61.3-5.7-3.2-5.2
Photronicsbenef2+68.9-10.7+86.4-24.9+35.8-6.6
Leeno Industrialbenef2+21-5.3+18.3+9.5+150.1-30.3

YTD as of 2026-07-10 · source: Yahoo Finance

The thesis is a No.2 automotive-MCU position riding structural demand as electrification and ADAS raise chip content per vehicle. Automakers like Toyota are its largest end market, it is moving up to high-integration SoCs (R-Car V4H selected for the new RAV4 ADAS), and it saves capital via a fab-lite structure outsourcing leading-edge logic to TSMC. A Wolfspeed SiC investment extends it into power semiconductors, targeting EV inverter demand. But revenue is heavily tied to the automotive/industrial cycle and rolls over with vehicle-production and inventory corrections, and on the supply side it depends on TSMC foundry and Synopsys/Cadence EDA. Risks are auto-chip inventory corrections and the payback pace of new investments like SiC.

Analysis generated from returns as of 2026-07-10

Analyst ratings

Consensus: Buy 3 · Hold 0 · Sell 0 · Avg. target ¥5,833 · Price ¥4,762 (07-10) · Upside +22%

BrokerRatingTargetPublished
MacquarieOutperform¥6,200Jul 2, 2026Report
Nomura SecuritiesBuy¥5,300Jun 26, 2026Report
Morgan StanleyOverweight¥6,000Jun 23, 2026Report

In June-July 2026 Macquarie (JPY 6,200), Morgan Stanley (JPY 6,000), BofA (JPY 5,700) and Nomura (JPY 5,300) all sharply raised targets, reinforcing the Buy consensus.


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