Renesas plans to close LSI chip plant in Japan

6 years ago by in Business

Japan’s Renesas Electronics Corp plans to close LSI chip plant in northern Japan that makes chips for Nintendo Co Ltd’s Wii game consoles and other consumer electronics. The decision comes after Renesas failed to find a buyer for the facility.

The state-of-the-art Tsuruoka plant’s 1.000 employees will be offered reassignments or voluntary redundancy. In the meanwhile, Renesas restructures to focus on making microcontrollers for automotive electronics, the field where it holds the top global market share. The shutdown is to take place over the next two to three years, sources of the international media said.

Renesas had been in talks to sell the Tsuruoka plant to Taiwan Semiconductor Manufacturing Co. The company is due to receive a Y 150 billion ($1.53 billion) investment by end-September led by the state-run Innovation Network Corporation of Japan.

Also Renesas declined to join a planned merger of the system LSI operations of Panasonic Corp and Fujitsu Ltd to form a Japanese national champion in the sector. System LSI chips are used in TVs, digital cameras and other consumer electronics.

Renesas makes automotive microcontrollers at its Naka semiconductor plant north of Tokyo.