Feeds

Renesas rumours: Semi seeks $1.3bn stimulus, stiffs 12,000

Chip giant ducks mass redundancies claims

The essential guide to IT transformation

Down-on-its-luck semiconductor biz Renesas Electronics announced today the first step of a rumoured restructuring plan that's believed to include 12,000 job cuts.

Reports over the weekend suggested that Renesas could axe employees and look for a helping hand of up to ¥100bn ($1.3bn, £803m). The Japanese microcontroller maker is expected to turn to main stockholders including Hitachi, Mitsubishi and NEC to fill the coffers, as well as private equity firms.

Renesas refused to confirm or deny the cuts and financing round, but did announce a new deal with Taiwan Semiconductor Manufacturing Company: TSMC will now make 40nm process microchips, as well as 90nm ones, for Renesas.

"There were media reports regarding personnel reduction, which were published in certain media," a spokesman stated. "The reports were not based on Renesas' announcement and they cannot be confirmed or regarded as fact at this time."

Japanese chipmakers are having a rough time trying to compete with their Asian rivals. Elpida Memory has already bitten the dust and filed for bankruptcy in February this year.

US company Micron Technologies is now in talks to pick over Elpida's remains, but other memory-makers pulled out of the bidding, leaving the possibility of a white knight to rescue Renesas more uncertain.

Shares in Renesas, which is the world's fifth largest chip biz and churns out ASICs to MOSFETs, fell nearly 11 per cent on the Tokyo Stock Exchange ahead of the TSMC announcement as the rumours freaked out investors. ®

Gartner critical capabilities for enterprise endpoint backup

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?