Renesas to close Shiga factory

Major Japanese chipmaker Renesas Electronics is shutting down one of its factories despite growing global demand for semiconductors. The company cites price competition with overseas rivals.

The plant in Shiga Prefecture will cease operations on Tuesday. It's mainly been producing semiconductors for communications equipment. The company has decided to pull out of that market, where intense competition has hurt its profits.

Renesas is streamlining operations with a focus on high-demand chip types.

The company sold its factory in Kochi Prefecture three years ago.

It also decided last month to close its factory in Yamaguchi Prefecture, which makes semiconductors for industrial robots.