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Renesas forecasts flood of red ink

8/2/2012 03:48 PM EDT
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krisi
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re: Renesas forecasts flood of red ink
krisi   8/2/2012 8:05:27 PM
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$1B+loss to restructure! whoow...is there any future left for Renesas? Kris

GREAT-Terry
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re: Renesas forecasts flood of red ink
GREAT-Terry   8/3/2012 5:27:23 AM
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What a shame! Japanese once had many good and profitable IC companies but what is the situation now? What did they do wrongly? Renesas surely won't have future. Will anybody care to acquire them?

joshxdr
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re: Renesas forecasts flood of red ink
joshxdr   8/3/2012 11:06:31 AM
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Japan used to have massive vertical integration, low costs, "salaryman" culture of unpaid overtime. Samsung enjoys these advantages now. This business model does not work when you have high costs and you need to be more nimble and innovative.

weflynnJr
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re: Renesas forecasts flood of red ink
weflynnJr   8/3/2012 12:31:29 PM
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Losses are due to two things: Expenses too high and/or revenues too low. I know, thank you Captain Obvious. I think that on the revenue side, they are not making enough of an effort to get the "long tail" customers - the smaller organizations that use 100K chips a year or less. There are only so many whales in the ocean. Eventually you need to eat minnows. Also, their ecosystem needs work. A recent survey showed them at the bottom of the heap in this category.

krisi
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re: Renesas forecasts flood of red ink
krisi   8/3/2012 2:32:37 PM
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Japan suffers but Korea prospers...and soon China will take over...not every country can be successful forever...Kris

t.alex
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re: Renesas forecasts flood of red ink
t.alex   8/3/2012 2:52:37 PM
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Renesas has akready been a big mess since inception from hitachi and Mitsubishi. It has so many products without much convergence.

WW Thinker
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re: Renesas forecasts flood of red ink
WW Thinker   8/3/2012 4:56:31 PM
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Kris, read my lips, Renesas is a joke from the start, and it will continue to be a joke. It is a company who sole existence is to keep the pre-existing employees as much and as long as possible. While many of its products are competitive on a worldwide basis, many are NOT and the management simply do not have the gut and the strong wills to change the tide!

t.alex
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re: Renesas forecasts flood of red ink
t.alex   8/4/2012 9:44:34 AM
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Totally agree. What it needs most is strong leadership, with so many mergings.

joshxdr
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re: Renesas forecasts flood of red ink
joshxdr   8/4/2012 2:48:57 PM
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I don't know the particulars of Renasas, but merging the semi companies of some of the old keiretsu was a matter of survival. Once labor costs started to rise in Japan, the vertically integrated electronics manufacturing business model didn't work any more. It is a huge cultural change from a captive parts supply group to an open market semi company. There are a lot of very smart people working at Renesas, but it is possible the cultural change was too big to overcome.

krisi
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re: Renesas forecasts flood of red ink
krisi   8/9/2012 4:17:31 PM
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I guess Japan is using this recipe to keep unemployment low...maybe this is not bad as it looks to keep some struggling high-tech industru alive...Kris

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