Japanese chip maker Renesas Electronics is going through tough times. The company will cut 6,000 jobs, representing 15 percent of its 42,000 employees worldwide, while it makes efforts to raise Y50 billion ($630 million) to revive its struggling business, sources say.
The information, published by the Japanese press, was not confirmed by Renesas. One of the major shareholders of the company, Mitsubishi Electric said however that it was prepared to provide fresh capital if Renesas would request it.
Mitsubishi Electric’s president Kenichiro Yamanishi even added that other investors of Renesas “have the responsibility” of helping the company.
A spokesperson for Renesas, which announced a Y62 billion loss for last fiscal year, commented that “the company is regularly consulting with the top shareholders on its financial condition, especially as its performance is not so good.”
Renesas Electronics was founded in 2010 as a joint-venture of three major chip businesses, of NEC, Mitsubishi Electric and Hitachi.