Renesas Swings to Operating Loss in 1st Half

Economy

Tokyo, Aug. 6 (Jiji Press)--Renesas Electronics Corp. <6723> said Tuesday that it swung to an operating loss in January-June due chiefly to lower chip prices amid the prolonged trade war between the United States and China.

The Japanese chipmaker posted a group operating loss of 3,772 million yen for the fiscal first half against the year-before profit of 56,134 million yen.

The company saw its sales of semiconductors for automobiles plunge some 10 pct.

Renesas said it will lower production for about one week later this month. It was previously cautious about a production cutback in summer after a two-week plant suspension in May led to progress in inventory adjustment.

The company reversed course in response to changes in macroeconomic conditions, said Renesas President and Chief Executive Officer Hidetoshi Shibata.

[Copyright The Jiji Press, Ltd.]

Jiji Press