Japan fund and firms aim to rescue electronics giant for $3b

TOKYO (REUTERS) - A Japan government fund is expected to partner with about 10 companies in hopes of buying the struggling chipmaker Renesas Electronics in a 200 billion yen (S$3.16 billion) deal, the Nikkei business daily reported.

The taxpayer-funded Innovation Network plans to invest 150 billion yen to acquire two-thirds of Renesas' shares on a voting rights basis, the Japanese newspaper said, after reporting the principles of the plan last month.

A consortium of Japanese companies including Canon, Denso, Honda Motor, Nikon, Nissan Motor, Panasonic, Toyota Motor and Yaskawa Electric, are also expected to invest a total of nearly 50 billion yen, the Nikkei said.

German industrial group Robert Bosch is also considering an investment in the world's fifth-largest chipmaker, the Nikkei added.