900 workers will be offered jobs at other Renesas sites or redundancy.
By the end of September Renesas is due to receive a bail-out of $1.5 billion from the Japanese government and eight of its customers.
Last month Renesas got a new chairman and CEO - Hisao Sakuta from Omron.
Last year Renesas escaped being taken over by New York private equity firm KKR.
However the $10 billion revenue company with over 30,000 employees is clearly bloated with too many sites and staff and it seems Sakuta is making a start on getting it into shape.