Feeds

Japan's Renesas set for £1.6bn rescue plan

Japanese microcontroller-maker to receive government rev-up, says report

Build a business case: developing custom apps

Ailing Japanese chipmaker Renesas Electronics is set to receive a ¥200bn (£1.6bn) investment boost to help prop up the company, the majority of which will come from the government, according to new reports from the Far East.

The state-backed Innovation Network Corporation of Japan (INCJ) will plough around ¥150bn (£1.2bn) in for two-thirds of Renesas shares, according to several reports citing a Nikkei article.

The remaining ¥50bn (£397m) will apparently be funded by a group of top Japanese tech and auto firms including Panasonic, Canon, Toyota, Nissan and Honda.

The involvement of the car-makers is due to Renesas’ position as the world’s leading producer of microcontroller chips used in cars.

However, the fifth largest chipmaker on the planet has struggled to compete in recent times with local rivals in South Korea and Taiwan and in May was rumoured to be considering cutting a whopping 12,000 jobs.

The firm’s troubles have been mirrored nationwide as Japan’s once-proud semiconductor producers struggle to stay relevant.

Toshiba, Fujitsu Semiconductor and Mitsubishi all joined Renesas by announcing significant revenue losses in Q2 this year while debt-laden Elpida filed for bankruptcy in February.

A strong yen and the lingering effects of last year’s Tohoku tsunami and earthquake are also said to have taken their toll.

It is thought that the firms investing in the ¥200bn rescue package are looking to ensure the steady supply of microcontrollers for their products.

A Renesas spokesperson told The Reg they couldn’t confirm the report. ®

Boost IT visibility and business value

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

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.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.