Japan's Renesas ups chip outsourcing to Taiwan giant

May 28, 2012
Senior vice president for Japan's chipmaker Renesas Electronics, Shinichi Iwamoto (R), shakes hands with specialty technology director for the world's largest chip maker, Taiwan Semiconductor Manufacturing Company (TMSC), Lin Cheng-Ming, at a press conference in Tokyo. Renesas Electronics said it will boost the outsourcing of its chip production to Taiwan's TSMC.

Japan's Renesas Electronics said Monday it will boost the outsourcing of its chip production to Taiwan's TSMC, but it declined comment on reports it would cut about 30 percent of its staff.

In a statement, the firms said Renesas would unload more of its output of microcontrollers -- key components in vehicles and home appliances -- to the Taiwanese firm as part of an ongoing "technology collaboration" agreement.

Renesas, the world's biggest supplier of automotive microcontroller chips, is already outsourcing an older version of the products to Company (TSMC).

Renesas Vice-President Shinichi Iwamoto said the move to its rival would see more efficient and flexible production, making it easier to match fast-changing customer demand.

Iwamoto added that "by integrating both companies' world-leading technologies through this collaboration, we will construct a supply structure which secures consistent supply for our customers."

The announcement comes amid reports Renesas, which lost 62.6 billion yen ($785 million) in the year to March, may cut up to 14,000 jobs, about one-third of its workforce, as part of a major restructuring.

On Monday, it declined to comment on the job cut reports, or an earlier story in the daily that said it planned to raise 100 billion yen, mainly from its top shareholders NEC, Hitachi and .

Japan's microchip industry has struggled amid a strong yen and fierce competition, especially from South Korean and Taiwanese rivals, while manufacturers were also hit by last year's quake-tsunami disaster.

shares tumbled 10.62 percent Monday to 244 yen after hitting an all-time low of 238 yen earlier in the day.

Explore further: MediaTek SoC to boost 64-bit Android devices

add to favorites email to friend print save as pdf

Related Stories

Japan electronic giants eye chip merger: reports

Feb 08, 2012

Three of Japan's biggest electronics companies are to join forces in a chip-making venture, according to reports, days after a swathe of dire results from a sector struggling to compete globally.

Japanese firms in talks on microchip merger

Apr 16, 2009

Renesas Technology Corp. and NEC Electronics Corp. are in merger talks to create Japan's top chipmaker as they seek to survive the global recession, reports said Thursday.

Japan's NEC sees $1.36 billion net loss

Apr 27, 2012

Japanese IT firm NEC said Friday it lost $1.36 billion in the year to March as asset write-downs and tax payments hit its bottom line, even as operating profit rose.

Japan's Toshiba returns to black

May 09, 2011

Japan's Toshiba on Monday said it returned to the black for the year to March, but warned the outlook remains uncertain due to the impact of the massive quake and tsunami in March.

Sony more than doubles net loss forecast to $6.4 bn

Apr 10, 2012

Japan's Sony on Tuesday said it would book a net loss of about $6.4 billion in the year to March, more than double its previous forecast amid sweeping changes at the struggling electronics giant.

Recommended for you

Social Security spent $300M on 'IT boondoggle'

just added

(AP)—Six years ago the Social Security Administration embarked on an aggressive plan to replace outdated computer systems overwhelmed by a growing flood of disability claims.

Cheaper wireless plans cut into AT&T 2Q profit

3 minutes ago

(AP)—AT&T posted lower net income for the latest quarter due to cheaper cellphone plans it introduced as a response to aggressive pricing from smaller competitor T-Mobile US.

Facebook shares profit growth story

8 minutes ago

Facebook on Wednesday reported that is quarterly profit more than doubled amid big gains in ad revenues and a jump in users.

Six charged in global e-ticket hacking scheme

36 minutes ago

Criminal charges were filed Wednesday against six people in what authorities said was a global cyber-crime ring that created fraudulent e-tickets for major concerts and sporting events.

User comments : 0