Reuters: Private Equity: UPDATE 1-Renesas to sell 10 plants, cut 30 pct jobs - Nikkei

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UPDATE 1-Renesas to sell 10 plants, cut 30 pct jobs - Nikkei Jun 29th 2012, 18:13 June 30 | Fri Jun 29, 2012 2:13pm EDT June 30 (Reuters) - Japanese chipmaker Renesas Electronics Corp will sell or shut down nearly half of its domestic fabrication plants, and cut 30 percent of its workforce, the Nikkei business daily said. Renesas is in talks to sell its main fab for system chips in Yamagata Prefecture to Taiwan Semiconductor Manufacturing Co , and a factory in the Aomori Prefecture to Fuji Electric Co, the daily said. The process is expected to take a year or two, Nikkei said, adding that the company plans to cut about 14,000 jobs and take a related charge of almost 100 billion yen ($1.25 billion). Renesas, the world's fifth-largest microchip manufacturer and a product of successive mergers with Hitachi Ltd, Mitsubishi Electric and NEC Corp, has been struggling in the face of increased overseas competition as it tries to revive its system chip business. These shareholders and four banks have already agreed to provide Renesas 100 billion yen in help, mostly in the form of loans, Nikkei said. The company is also in talks with U.S. investment fund Kohlberg Kravis Roberts & Co to raise another 50 billion yen ($626.64 million) in capital.

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