Since Japan’s Renesas Electronics Corp. bought Nokia Oyj’s mobile phone chip business three years ago, it has not recovered from its slump. Having paid $200 million, it has done nothing but contribute to the losses of the company—to the point where Renesas had to avail of the government’s $1.6 billion bailout option in December just to deter a bid from American private equity firm KKR & Co LP for fear that it would end up in foreign hands. But it looks like the winds may be changing.
The chipmaker’s president, Tetsuya Tsurumaru, who just took over the helm on February 22, confirmed that selling the business is laid out as an option. “Overseas is our main focus,” he said, but he opted not to expound further as to which firm Renesas was in talks with. Of course, he clarified that a sale in Japan is still open, but again, no further discussions about it with the media were made.
It has been reported that Renesas is likely to join an all-Japanese merger with the LSI chip units of Panasonic Corp. and Fujitsu Ltd. that make microchips for digital cameras, TVs and other consumer electronic products, said a source to Reuters last month. However, there is nothing final as of yet, and discussions are still being made. In February, Renesas had to lower its earnings forecast for the year ending March 2013, registering an operating loss of 26 billion yen (approx. $274.8 million) instead.
[via ZD Net]
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