Global Foundries gains as Renesas goes a bit fabless -

Japanese wire nikkei.com has the scoop on big changes at Renesas, which sprung into life on the 1st of April from the shunting together of NEC Electronics and Renesas Technology.

According to nikkei, Renesas is to stop producing "cutting edge" chips and outsource production to Taiwanese foundry TSMC and to newly sprung foundry GloFo (Global Foundries).

5,000 people will lose their jobs at Renesas - GloFo and TSMC will gain because they will make leading edge semiconductors for the company. The system chips will be aimed at the auto and phone market, the wire said.

Renesas will stick to its last by consolidating lines at its two fabs in Japan that make chips using 12-inch (300mm) wafers.