Hitachi to supply $224 mn loan to Renesas

TOKYO, JAPAN: Japan's Hitachi Ltd said on Friday it will supply a 17.5 billion yen ($223.8 million) loan to prop up struggling chipmaker Renesas Electronics Corp on October 1.

Mitsubishi Electric Corp, which like Hitachi is a major shareholder in Renesas, earlier said it would provide 14.5 billion yen to the chipmaker.

Renesas has said it plans to reduce its workforce by 12 per cent and halve the number of domestic plants within three years to better compete against tough overseas competitors.