After a few months of speculation about its future, Renesas has announced that it will raise ¥150billion ($1.8bn) through the issue of shares to The Innovation Network Corporation of Japan, Toyota Motor, Nissan, Keihin, Denso, Canon, Nikon, Panasonic and Yaskawa Electric.
The aim is to provide the company with a financial foundation that is resistant to rapid changes in the global economy and domestic business environment. The money will also be invest in core business areas for growth to enable a recovery in performance.
According to a company statement: 'Bolstering our financial base is still a pressing matter, as it will allow us to manage our businesses flexibly even if there are significant shifts in the market structure during the process of improvement. Looking at growth investment, as a participant in the semiconductor industry it is vital to invest timely to support future differentiation of our products. Giving utmost priority to a stable financial base while continuing to restrict growth investment would be extremely risky in terms of securing future competitiveness'.
Renesas says it plans to use funds raised to realise its goal of growth in the Smart Society through investment in the five areas, including microcontroller development, automotive and industrial semiconductors and manufacturing capacity
*Meanwhile, Renesas has revised its expectations for its financial year ending 31 March 31 2013. It now says sales will be ¥48bn ($580million) lower than its prediction of ¥820bn ($10bn). Semiconductor sales are expected to be ¥51bn ($620m) less at ¥760bn ($9.2bn).