Japan set to save Renesas

Peter Clarke, EETimes
10/15/2012 4:50 AM EDT

LONDON – Struggling Japanese chip company Renesas Electronics Corp. now looks set to be saved by a Japanese buy-out led by a government investment fund.

The fund called the Innovation Network Corp. of Japan (INCJ) plans to invest 150 billion yen (about $1.9 billion) in Renesas in return for a two-thirds stake in the company. A group of about 10 companies will invest a further 50 billion yen in total, according to reports that referenced a Nikkei and Daily Yomiuri newspaper reports.

The INCJ is expected to appoint senior manager from outside the company and to sell off the System LSI business unit for integration with similar units at Fujitsu and Panasonic, according to a Daily Yomiuri report.

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