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Renesas looks to sell subsidiary to Panasonic-Fujitsu chip unit

Kyodo

Renesas Electronics Corp. is considering selling a subsidiary to a new company that Fujitsu Ltd. and Panasonic Corp. will set up by integrating their loss-making system LSI chip operations, sources said Tuesday.

Fujitsu and Panasonic announced the system LSI merger plan in February, but Renesas, which initially took part in the negotiations, failed to reach terms with them. Fujitsu and Panasonic, however, still want to acquire the chipmaker’s technology to boost their international competitiveness, the sources said.

The three are mulling incorporating Renesas Mobile Corp., a Renesas unit that develops semiconductors for smartphones, into the new company that Fujitsu and Panasonic are aiming to launch around the middle of fiscal 2013, which starts April, they said.

Renesas Mobile was established in 2010 by integrating Renesas Electronics’ mobile multimedia business and the wireless business of Finland’s Nokia Corp.

By involving Renesas, Fujitsu and Panasonic will aim to develop advanced chip products for smartphones at the new company. Around 1,800 Renesas Mobile employees will be taken on by the new company, they said.

Struggling Renesas, which is currently undergoing restructuring, will accelerate the streamlining of its business by selling the subsidiary.