By drafting drastic restructuring measures, ailing chipmaker Renesas Electronics Corp. has for the time being avoided the fate of Elpida Memory Inc., which filed for bankruptcy protection in February.
But merely implementing the measures, which include a reduction in the number of domestic plants and personnel cuts, may not be enough to eliminate all the concerns surrounding its struggling business, given the harsh business environment.
"We will establish a strong revenue base that can endure fluctuations in market conditions," Renesas President Yasushi Akao told a news conference Tuesday in Tokyo, noting the company is still targeting a double-digit operating profit margin.