Japanese chipmaker Renesas to cut 14,000 jobs, sell loss-making unit
26 May 2012
Japanese chipmaker Renesas Electronics Corp plans to eliminate at least 14,000 jobs and sell off its loss-making operations, the Nikkei newspaper reported today, citing a source close to the matter.
The Kawasaki-based company is also planning to raise more than ¥100 billion ($1.3 billion) through a private share placement to bolster its balance sheet, and sell a major semiconductor factory in Japan to Taiwan Semiconductor Manufacturing Co.
The move comes barely three months after Japan's only DRAM chip maker Elpida Memory, reeling under 448 billion yen ($5.55 billion) debt, filed for bankruptcy protection. (See: Japan's only DRAM chip maker Elpida files for bankruptcy)
Renesas is one of the world's largest manufacturers of semiconductor systems for mobile phones and automotive applications. It is also the world's largest manufacturer of microcontrollers and the second largest manufacturer of application processors.
The company is also known for LCD drivers, RF ICs, mixed-signal integrated circuits and system-on-a-chip semiconductors.
The company was formed in April 2003 as a joint venture between Hitachi and Mitsubishi Electric and was called Renesas Technology. It merged with NEC Electronics in 2010 and changed its name to Renesas Electronics Corp.