CHIPMAKER Renesas will receive a $2.4bn loan to keep the firm afloat.
Renesas has been struggling to keep its head above water as competition from foreign rivals has left it in dire financial straits. According to Reuters the firm has managed to secure $2.4bn in loans from carmakers and a Japanese technology fund.
Innovation Network Corp, a Japanese state funded organisation will loan $2.2bn to Renesas in exchange for a 66 percent stake in the firm, while carmakers including Toyota and Nissan will provide another $200m in loans. The firm's shareholders are expected to approve the deal with a decision expected early in December.
Although Renesas hasn't announced the loan, its stock price rose significantly. While Japanese electronics firms have been suffering, Renesas is seen in a different light due to its position in the automotive industry, which is expected to drive growth in chip sales in coming years.
Renesas is in the midst of a restructuring programme that has seen 5,000 jobs go this year, with eight out of 18 plants being shuttered. The company has already received more than $2.8bn from banks and shareholders and it seems this loan could be the last chance for Renesas to turn itself around before investors completely lose faith. µ