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Tuesday, July 31, 2012
Renesas To Receive $633 Million Support From Its Shareholders


Renesas Electronics Corp on Tuesday secured a combined 49.5 billion yen ($633 million) in financial support from three major shareholders - Mitsubishi Electric Corp, NEC and Hitachi.

The Japanese chip maker has been seeking support after sinking to a net loss in the fiscal year ended in March, hit by a strong yen and fierce competition from the likes of Samsung Electronics.

Mitsubishi Electric will provide Renesas with 14.5 billion yen in loans, while Hitachi said separately it would supply loans worth 17.5 billion yen. The loans will be made on October 1.

NEC said it would provide 17.5 billion yen in financial support in the form of guarantees.


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