Failing Chipmaker Said to Accept a $2.2 Billion Bailout by Japanese Government

“A government-backed fund is preparing to spend more than 180 billion yen ($2.2 billion) for two-thirds of Renesas Electronics Corp. (6723) as shareholders in the ailing Japanese chipmaker consider the deal, a person with knowledge of the plan said.

Renesas’s three biggest shareholders — Mitsubishi Electric (6503) Corp., NEC Corp. (6701)and Hitachi Ltd. — are close to agreeing on a stake sale to Innovation Network Corp. of Japan, the person said, asking not to be named because negotiations aren’t public. Eight companies, including Toyota Motor Corp. (7203), will invest more than 10 billion yen total for minority stakes under the proposal, which could still change, the person said.”

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