Sun, May 27, 2012 - Page 11 News List

Japanese chipmaker Renesas might cut 14,000 jobs: report

30 PERCENT FIRED:The loss-making company plans to sell a unit to a Taiwanese firm, raise ¥100 billion and slash 30% of its work force in a major bid to restructure

AFP and Bloomberg, TOKYO

Japanese semiconductor maker Renesas Electronics Corp is considering cutting up to 14,000 jobs or 30 percent of its work force as part of a major restructuring plan, news reports said yesterday.

The company is also considering selling a major factory to a Taiwanese firm, while closing or scaling down other plants, said the Nikkei and the Asahi Shimbun newspapers as well as Kyodo News.

Renesas, which lost ¥62.6 billion (US$785 million) in the year to March, also plans to raise ¥100 billion, mainly from its top shareholders NEC, Hitachi and Mitsubishi Electric, the Nikkei said.

The company wants to sell its major factory in Yamagata to Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the Nikkei said. The plant, with 1,400 workers, produces semiconductors used in televisions and other digital gadgets, but low domestic demand has forced the company to reduce operations at the factory, the Nikkei said.

In a statement, Renesas distanced itself from the reports, saying no formal decision had been made. The scope of the newly reported plan is significantly higher than what was reported on Tuesday by the Yomiuri Shimbun, which reported 6,000 job cuts and ¥50 billion in fresh capital.

The chipmaker has lost about 35 percent of its market value since May 9, when it said it could not provide an earnings outlook because of uncertainty in the chip market. The stock rose 1.9 percent to ¥273 at Friday’s close in Tokyo.

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