Renesas Electronics Corp. is doing something that only a decade ago would have been unthinkable for a Japanese semiconductor maker: outsourcing research overseas.

Outsourcing more R&D reduces the cost of developing components for new applications in autonomous cars and "the internet of things," Chief Executive Officer Bunsei Kure said on Thursday. It's also a way to hedge against currency swings, Kure told reporters days after Renesas shareholders approved his appointment as CEO and president.

Japanese companies like Hitachi Ltd., NEC Corp. and Toshiba Corp. dominated the semiconductor market in the 80s and 90s by closely guarding their manufacturing and design know-how. They've since struggled to adapt to a shift in demand toward cheaper components in consumer electronics and PCs, ceding ground to Asian rivals like Samsung Electronics Co.