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Japan to Take Control of Chipmaker Renesas
Government-owned Innovation Network Corp. of Japan has agreed to invest 138 billion yen ($1.7 billion) in floundering chipmaker Renesas Electronics Corp. in exchange for a 69.2% stake in the company.
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Government-owned Innovation Network Corp. of Japan has agreed to invest 138 billion yen ($1.7 billion) in floundering chipmaker Renesas Electronics Corp. in exchange for a 69.2% stake in the company.
Eight Renesas customers, including Denso, Nissan and Toyota, pledged last month to invest 12 billion yen ($145 million) and receive an estimated combined stake of 6%. The supplier also received 258 billion yen ($3.1 billion) in loans from its banks and major shareholders.
The government aims to appoint new management and push further restructuring at Renesas, which has shed 7,500 employees this year and aims to sell or close eight of its 18 plants within three years.
The company supplies about 30% of the world's microprocessors. When Renesas' plant in Japan was damaged by the country's earthquake last year, the disruption hurt car production almost everywhere.
News reports say Japan stepped in to preserve domestic ownership of the company after New York City-based private equity firm KKR & Co. tried to buy Renesas last summer for 100 billion yen ($1.2 billion).
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