Sept. 27 (Bloomberg) -- Renesas Electronics Corp. rose for the second day in Tokyo after Kyodo News reported a Japanese state-backed fund and a group of companies may invest about 200 billion yen ($2.6 billion) in the unprofitable chipmaker.
Renesas, which supplies companies including Apple Inc. and Nintendo Co., jumped as much as 7.5 percent to 330 yen and traded at 315 yen as of 11 a.m. on the Tokyo Stock Exchange. The benchmark Nikkei 225 Stock Average fell 0.1 percent.
The world’s biggest microcontroller maker surged more than 20 percent this week after a government official said Sept. 24 that Toyota Motor Corp. and Panasonic Corp. are among Japanese companies that may join with Innovation Network Corp. of Japan to invest more than 100 billion yen for a majority stake in Renesas. The companies want to secure a stable supply of microcontrollers from the chipmaker, Kyodo reported, without saying where it got the information.
The rescue plan for the Apple supplier, first reported by the Nikkei newspaper Sept. 22, would counter a bid by KKR & Co., a New York-based private-equity firm, which is said to have offered about 100 billion yen to buy shares of Renesas.
Kawasaki, Japan-based Renesas is trying to end losses exacerbated by falling demand for its system LSI chips, used for functions from processing images for TV screens to crunching data. The company plans to cut 5,000 jobs and may close or sell as many as nine of 18 domestic factories.
Renesas forecasts it will return to an operating profit this fiscal year, it said Aug. 2. Operating profit, or sales minus the cost of goods sold and selling, general and administrative expenses, may total 21 billion yen for the 12 months ending March 31, compared with a loss of 56.8 billion yen a year earlier, Renesas said.
The company was formed in 2010 through the merger of money-losing chipmakers Renesas Technology Corp., a venture between Hitachi and Mitsubishi Electric, and NEC Electronics Corp.
To contact the reporter on this story: Naoko Fujimura in Tokyo at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Tighe at email@example.com