'Renesas Electronics Corp' to become World's Third Largest
Tokyo, Sept 23, 2009 (IRG) - Renesas Technology Corp. and NEC Electronics Corp. said their parent firms plan to inject a total of 200 billion yen (US$2.2 billion) as they move toward a merger next April. The merged entity, expected to be called c., will likely become not only Japan's largest semiconductor maker, surpassing Toshiba Corp., but also the world's No. 3 chipmaker, trailing Intel Corp. of the U.S. and Samsung Electronics Co. of South Korea.
Before the merger, loss-making Renesas will first issue shares to its parent firms, Hitachi Ltd. and Mitsubishi Electric Corp. to raise 78 billion yen. The merged entity will then issue shares worth 122 billion yen (US$1.3 billion) to NEC Corp., Hitachi and Mitsubishi.
