Renesas gets government bailout

The company said it is to receive a total of JPY 150 billion (USD 1.8 billion) in aid from a government-backed fund (The Innovation Network Corporation of Japan (“INCJ”)) and manufacturers (Toyota Motor Corporation, Nissan Motor Co., Ltd., Keihin Corporation, Denso Corporation, Canon Inc., Nikon Corporation, Panasonic Corporation and Yaskawa Electric Corporation) for it stay afloat. Furthermore, Renesas also issued a revision of its full-year forecasts (ending March 31, 2013). Net sales are expected to total 820.0 billion yen, 48.0 billion yen down from the previous forecast (announced on August 2, 2012); semiconductor sales are expected to total 760.0 billion yen, 51.0 billion yen down from the previous forecast. As factors including prolonged debt worries in Europe, further market slowdown in China and other emerging economies as well as increased uncertainty of Japan-China relations might impact on demand, Renesas forecasts its sales to be less than the original expectations and has made a downward revision to its forecasts for both net sales and semiconductor sales. The company expects the sales from three product areas, MCUs, analog and power (A&P) devices and system-on-Chip (SoC) solutions; to decline from the previous forecast.