Wednesday, March 13, 2013
Renesas Eyes Selling Mobile Chip Unit
TOKYO (Nikkei)--Troubled chipmaker Renesas Electronics Corp. (6723) announced Tuesday that it will consider selling subsidiary Renesas Mobile Corp., which handles system chips for mobile devices.
Renesas now intends to sell the mobile chip unit to a foreign company. If that fails, it may liquidate the subsidiary.
Renesas combined its cellular phone semiconductor business with Nokia Corp.'s wireless modem unit, which it acquired in 2010 for roughly 200 million dollars, to form Renesas Mobile. Suffering from falling demand at home and struggling to win orders overseas, the subsidiary posted an operating loss of 45 billion yen over a period of roughly two years. It currently has about 1,900 employees, 1,100 of whom are from Nokia.
(The Nikkei, March 13 morning edition)