Renesas closing game console chip plant

Japanese chipmaker will close its Tsuruoka plant that makes chips for Nintendo game consoles and other consumer electronics, following failed efforts to find a buyer for the facility.


Renesas Electronics says it is closing a plant that makes large scale integration (LSI) chips for Nintendo's game consoles and other consumer electronics.

According to Reuters on Friday, the Japanese chipmaker failed to find a buyer for the facility which is located in northern Japan in Tsuruoka.

The facility, which employed 1,000 people, struggled to make money as makers of game consoles and cameras it supplied to were hurt by competition from smartphones and tablets, which users increasingly were using to play games and take photographs.

Renesas previously had been in talks with Taiwan Semiconductor Manufacturing Corporation (TSMC) to buy over its Tsuruoka plant, but failed to reach an agreement  in March 2013.

In July last year, Renesas said it was cutting more than 5,000 jobs  or 12 percent of its global workforce to save costs, and was likely to close or sell up to 10 of its 18 domestic plants over the next three years.