SAN JOSE, Calif. - Amid plans to embrace foundries, Japan's Renesas Electronics Corp. plans to cut nearly 10 percent of its workforce, or about 5,000 jobs, by year's end, according to Reuters, which cited Nikkei as its source.
The company will expand its foundry outsourcing efforts. It will outsource more of its production to Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) and GlobalFoundries Inc., according to the report.
Renesas seeks to become profitable by 2011.
Completing a merger transaction between the former NEC Electronics Corp. and Renesas Technology Corp., the new combined entity--Renesas Electronics Corp.--commenced business operations on April 1.
Renesas (Tokyo) will be a publically traded company in Japan. When combined, the company had $10.212 billion in sales in 2009, making it the world's third largest chip maker, next to Intel Corp. and Samsung Electronics Co. Ltd.
Still, there is a lot of work to be done at Renesas. The company must integrate the operations of NEC Electronics and the old Renesas. That's no small task. And many of the tough decisions have yet to be made.