Renesas, a Japanese chip maker, hangs on the front line and private equity giant KKR reaches out to rescue

Due to the tight supply caused by natural disasters in Japan and Thailand, Renesas Electronics’ net loss for the previous fiscal year exceeded its previous forecast. The competition between Renesas Electronics’ system chip business and Samsung Electronics is becoming increasingly fierce. Analysts said that due to the appreciation of the Japanese yen, Japanese consumer electronics companies have cut their production capacity, and the large losses of the system-chip sector have made Renesas Electronics overwhelmed.

Recently, the global private equity fund giant KKR plans to invest approximately 100 billion yen (approximately US$1.27 billion) in the troubled Japanese chip maker Renesas Electronics. It is reported that KKR plans to purchase new shares of Renesas, the world's fifth-largest chip maker, through private placement channels. KKR has submitted an investment plan to Renesas Electronics's lending bank and three major shareholders, NEC, Hitachi Ltd and Mitsubishi Electric Corp.

Hitachi, Mitsubishi Electric Corporation and NEC Corporation, which hold 90% of Renesas Electronics, have agreed to provide Renesas Electronics with financial support of 49.5 billion yen, and the bank has also promised to provide an additional loan of 50 billion yen. .

At the end of June this year, Renesas Electronics filed an application for assistance of up to 100 billion yen to the outside world. In order to improve the financial situation, Renesas Electronics announced the layoffs of 5,000 people in early July, which accounted for 12% of the total number of its employees worldwide. At the same time, it also shut down its 19 Japanese factories. If the KKR investment proposal is passed, then half of the shares of Renesas will be obtained, and Renesas Electronics will be led to reorganize in the future.

In this case, the reporter of the component trading network interviewed the merchants of its Renesas agency. The merchants told us that investment is indeed a matter of fact, but it has not been given a written notice, if the notification must have affected the present The price of the product will also bring us more lucrative profits. The investment for the previous loss was undoubtedly a remedy for Renesas on the verge of death, and Renesas's death from rejuvenation also increased the confidence of our merchants.