Stock in semiconductor-maker Renesas yesterday slipped to its lowest level on record in Tokyo, after the announcement of the company's plans to slash thousands of jobs and raise 100 billion yen (roughly 1.3 billion US dollars).

Renesas, whose semiconductors are used in a number of product ranging from consumer electronics to auto mobiles, announced that it had plans to slash its workforce by 10,000 jobs.

Following the announcement, shares in Renesas shed as much as 16 per cent to 206 yen. It was the lowest level since the company's initial public offering (IPO) in July 2003.

The job cuts are a part of the company's restructuring program, which according to a person familiar with the matter has already been presented to workers' union and lenders Mitsubishi UFJ Financial Group and Mizuho Financial Group.

Renesas, which reported a net loss of 62.6 billion yen for the twelve-month period ended March 31, is 91 percent owned by NEC Corp., Hitachi Ltd. and Mitsubishi Electric Corp.

Analysts expect Renesas to keep on suffering from low margins. Merrill Lynch analysts Simon Dong-je Woo wrote in a report, "We expect Renesas Electronics to continue to suffer from low margins."

The list of Renesas' customers includes Apple, Sony and Nintendo Co.