Feeds

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

Chip giant ducks mass redundancies claims

Secure remote control for conventional and virtual desktops

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
TEEN RAMPAGE: Kids in iPhone 6 'Will it bend' YouTube 'prank'
iPhones bent in Norwich? As if the place wasn't weird enough
George Clooney, WikiLeaks' lawyer wife hand out burner phones to wedding guests
Day 4: 'News'-papers STILL rammed with Clooney nuptials
iPAD-FONDLING fanboi sparks SECURITY ALERT at Sydney airport
Breaches screening rules cos Apple SCREEN ROOLZ, ok?
Crouching tiger, FAST ASLEEP dragon: Smugglers can't shift iPhone 6s
China's grey market reports 'sluggish' sales of Apple mobe
Apple's new iPhone 6 vulnerable to last year's TouchID fingerprint hack
But unsophisticated thieves need not attempt this trick
The British Museum plonks digital bricks on world of Minecraft
Institution confirms it's cool with joining the blocky universe
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.