According to a Reuters report, the Japanese government and several of the country's largest manufacturers are joining forces to rescue troubled electronics manufacturer Renesas Electronics. Toyota, Nissan, Honda, Panasonic, Canon and Denso are set to contribute a combined $637.9 million to a $2.55 billion deal that will see the group gain control of the company. Robert Bosch GmbH is also considering investing in the electronics manufacturer.
Why are so many varied corporations interested in Renesas' future? The company is the world's leading supplier of microcontroller chips. Even so, the strengthening yen and heavy competition from South Korea's Samsung Electronics Company has seen Renesas suffer through five years of financial losses. As a result, the company has laid off 12 percent of its workers and currently has plans to either sell or consolidate more than half of its domestic manufacturing facilities.