A Japan-backed fund will negotiate with Renesas Electronics Corp.’s main banks this weekend and may announce an investment of more than 180 billion yen ($2.2 billion) in the ailing chipmaker as early as next week, a person with knowledge of the plan said.
Hitachi Ltd., Japan’s second-largest manufacturer, posted a 52 percent drop in quarterly profit after selling a hard-disk drive unit and suffering from weaker demand because of the global economic slowdown.
Toshiba Corp. , Japan’s biggest chipmaker, plans to sell a semiconductor factory to Sony Corp. and outsource some output to bigger rival Samsung Electronics Co. as it tries to improve profitability at the chip business.
Toshiba Corp. and Hitachi Corp. may struggle to find buyers for their nuclear reactors after the worst atomic disaster since Chernobyl damaged Japan’s reputation for safety, analysts and investors said.
Renesas Electronics Corp. surged by a record 35 percent as a person with knowledge of the matter said KKR & Co. is in talks to spend about 100 billion yen ($1.3 billion) buying shares of the unprofitable Japanese chipmaker.
Renesas Electronics Corp. surged the most in almost three months in Tokyo trading after the Nikkei reported KKR & Co. will spend 100 billion yen ($1.3 billion) on new shares of the unprofitable Japanese chipmaker to take control of the company.
Renesas Electronics Corp., the Japanese chipmaker that’s been unprofitable each year since it was set up in 2010, will eliminate more than 5,000 jobs, or 12 percent of its workforce, as it seeks to trim losses.
Renesas Electronics Corp. fell to the lowest level on record after the company was said to be planning to eliminate 10,000 jobs and raise 100 billion yen ($1.3 billion) under the latest draft of a restructuring plan.