High-end chip manufacturer Renesas will outsource its production to rival Taiwan Semiconductor Manufacturing Co. (TSMC) in a major restructuring move, the company announced on Monday, May 28.
"Renesas and TSMC will collaborate to lead in advanced technologies for MCU platform and production by combining Renesas' MONOS technology supporting both high reliability and high speed, and high-quality technical support with TSMC's advanced CMOS process technologies and flexible production capacity," the statement noted.
The company is attempting to raise $1.3 billion and will cut over a fifth of its 46,000 strong workforce in order to do so.
The company's stock tumbled 25% in the two days after the plans were announced, but by Wednesday, May 30 the stock had climbed 27%.
The chip maker was lifted in part by bargain hunters and in part by favorable coverage from Morgan Stanley.
Renesas is one of the world's largest manufacturers of semiconductor systems for mobile phones. It is also the world's largest manufacturer of microcontrollers for cars.
by RTT Staff Writer
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