Obviously Renesas faces some extremely painful decisions/choices. But if you look at NXP and Freescale, both are still heavily burdened by the debt they took on as a result of those deals (especially Freescale). Is this really the best way forward for Renesas?
If NEC, one of the parent companies of Renesas, is not up for making further investments in Renesas, I don't think the Japan's MCU giant has little choice.
Just as it was the case with any European companies, massive layoffs are problematic because their workers are well protected in Japan. It's not Renesas doesn't have a will to reorganize the company. Without adequate funding, Renesas can't pull off layoffs, spinoffs or sales of fabs and divisions.
I have been reading your articles and comments regularly. You said..."It's not Renesas doesn't have a will to reorganize the company". I am sorry but I disagree here.
The fact is, Renesas management has been doing lip service all these years without producing concrete results. It is unthinkable in the states here that management of such a large organization is still in the office after failing to meet their own projections for the last 5 years.
I can understand that as a native Japanese you might have a soft corner for Renesas, and hence trying to defend their position. Fact is, it doesn't work in the real world anymore. Few years back, TI and Renesas were facing the same situation. However, TI didn't hesitate to make tough decisions and today although they are not growing, they still make decent profits. Renesas on the other hand chose to remain lethargic in their approach, and therefore they are out in the market once again begging for money.
Let's call a spade a spade. Renesas has become a blackhole, which will keep on sucking money. They won't make money even if all their factories are running at 100% capacity. Turnaround is not easy and choices they have are very tough. But I am pretty sure that Renesas management has absolutely no intentions of keeping their word. They just want to float around in the system for another 2-3 years, collect their retirement allowances and go home. In fact the current management team does not have any experience of running a public listed company. Most of the time they have worked under the umbrella of their parent companies without really facing the external world. I don't expect much from their current management.
Renesas today needs someone like Carlos Ghosn, who has the will and guts to pull through this sinking boat.