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Renesas to pull out of LCD chip business(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Feb. 1 -- (Kyodo) _ Struggling chipmaker Renesas Electronics Corp. will withdraw from the chip business for small liquid crystal displays as part of efforts to turn around its business performance. Renesas plans to sell all shares it holds in Renesas SP Drivers Inc., a Tokyo-based subsidiary in charge of chip development and sales, to an overseas semiconductor manufacturer, the source said. With exiting from the LCD chip market, Renesas aims to focus on chip production and sales for automobiles, where the Japanese company expects stable growth in the medium and long term. Renesas owns a 55 percent share in the subsidiary, while Sharp Corp. holds a 25 percent stake and Taiwan chipmaker Powerchip Technology Corp. has a 20 percent share. Although Renesas SP Drivers is in the black on growing demand for a product called driver IC amid the widespread use of smartphones around the globe, Renesas decided to pull out of the market amid intensifying competition with South Korean and Taiwanese rivals, the source said. Renesas exited from the chip market for large LCDs such as televisions in 2012. (c) 2014 Kyodo News International, Inc. |