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Renesas swings to operating loss

Jiji Press TOKYO (Jiji Press) — Renesas Electronics Corp. 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 for the fiscal first half against the year-before profit of ¥56,134 million.

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

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.

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