The parent companies of major Renesas Technology Corp. — Hitachi Ltd. and Mitsubishi Electric Corp. — will inject a combined ¥54 billion in fresh capital into the ailing chip maker to revive its financial health, sources said Friday.
Hitachi is expected to put up 55 percent of the fresh capital and Mitsubishi the remainder in line with their equity stakes in Renesas, the sources said.
Renesas, a leading supplier of semiconductor chips for automobiles and home electronics appliances, is expected to incur a group net loss of nearly ¥200 billion in the year to March 31 amid the global economic woes.
Renesas trails Toshiba Corp. in Japan in terms of the scale of its semiconductor business.
Renesas and other chip makers have been badly hit by falling prices for memory chips for use in devices such as cell phones and personal computers, and have also suffered due to plunging demand from large-lot microchip users, including automakers.