Major manufacturers have teamed up with a government-backed turnaround fund to put together a rescue package for Renesas Electronics, in a move designed to block a purchase by a US investment firm, The Nikkei reported. The consortium includes Toyota Motor, Panasonic and the Innovation Network Corp of Japan and would invest more than JPY 100 billion in the chipmaker, to acquire a majority stake by the end of the year. The participating firms, which also include Nissan Motor, Honda Motor, Canon and Fanuc, want to ensure stable supplies of high-quality microcontrollers from Renesas. The team also includes parts makers such as Denso and Keihin, and it may invite Germany's Bosch and other foreign companies. Under the INCJ's lead, the team is drawing up an investment plan that could be presented to Renesas shareholders NEC, Hitachi and Mitsubishi Electric as early as next month, the report said. Major lenders including Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank will also take part in the talks. In late August, Kohlberg Kravis Roberts proposed investing about JPY 100 billion in Renesas. Major lenders were ready to accept at one point but were also wary that microcontroller supplies could be disrupted if KKR pushes for significant restructuring, the paper said.
