Renesas Electronics Corp., the Japanese chipmaker getting a bailout from a state-backed fund, may replace President Yasushi Akao this month, a company official said.
The company may name Senior Vice President Tetsuya Tsurumaru to succeed Akao, said the official, who declined to be identified because the information isn’t yet public. Tsurumaru, 58, started at Hitachi Ltd. in 1979 and spent most of his career in production after joining Renesas’s predecessor company in 2003, according to the manufacturer’s website.
The new president would take over in the midst of a restructuring effort that includes more than 10,500 job cuts announced since July as Renesas tries to recover from losses amid falling demand for its system LSI chips. The company plans to sell 150 billion yen ($1.6 billion) of new shares to investors led by state-backed Innovation Network Corp. of Japan as part of a bailout.
The Nikkei newspaper said earlier today Tsurumaru will be named president. Renesas wasn’t the source of the report, and no decision has been made, the Kawasaki-based company said in a statement to the Tokyo Stock Exchange.
Renesas, which supplies Apple Inc (AAPL:US). and Nintendo Co., widened its full-year net loss forecast to 176 billion yen on Feb. 8 because of lower-than-expected orders in the fourth quarter and charges to write down its assets.
The company’s shares rose 2.8 percent to 262 yen as of 11:46 a.m. in Tokyo, trimming their decline this year to 14 percent.
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