Renesas announces restructuring plan

Renesas Electronics Corp. on Monday announced measures to restructure its business, with 200 billion yen injected from a Japanese government-backed fund and private- sector firms to help the struggling chipmaker. The state-backed Innovation Network Corp. of Japan (INCJ) and the chipmaker's eight key clients, including Toyota Motor Corp. and Nissan Motor Co., will first invest a combined 150 billion yen in Renesas. The fund stands ready to invest or loan an additional 50 billion yen in the future if the chipmaker needs more money, local media reported. Of the total amount of the first investment, INCJ will shoulder around 138.4 billion yen, while Toyota and Nissan will put in 5 billion yen and 3 billion yen, respectively. Canon Inc., Panasonic Corp. and Nikon Corp. will each invest 500 million yen, according to INCJ. The deal was aimed to counter a bid by U.S. investment fund Kohlberg Kravis Roberts & Co., which had sought to invest around 100 billion yen in Renesas, amid fears among Japanese manufacturers that the stable supply of key electronics components by Renesas would be jeopardized if the company were to be placed under a foreign firm, Kyodo news agency said.