Troubled Japanese microchip maker Renesas Electronics said on Thursday it expected a net loss of 150 billion yen ($1.9 billion) for the current fiscal year to March 2013.
The whopping figure comes after Renesas logged a net loss of 62.6 billion yen for the full year to March 2012 on revenues of 883.11 billion yen.
The firm blamed the widening shortfall on a one-time loss tied to an early retirement programme in the first half of this year as well as other restructuring expenses.
Last month, Renesas announced it will cut more than 5,000 domestic jobs as part of a bid to save 43 billion yen annually and reorganise domestic production to concentrate on its mainstay businesses.
Japan's microchip sector has struggled with a strong yen and fierce competition, especially from South Korean and Taiwanese rivals.
Japanese manufacturers, including Renesas, were also hit by last year's quake-tsunami disaster.
Earlier this year, Renesas said it would boost outsourcing of its chip production to Taiwan Semiconductor Manufacturing Co., including a bigger share of its output of microcontrollers -- key components in vehicles and home appliances.
Last month, the company's president said he had won agreement for financial help from top shareholders, the technology giants NEC, Hitachi and Mitsubishi Electric, along with creditor banks.
For the first quarter to June, the company reported a net loss of 20.76 billion yen, compared with 33.22 billion yen in the same quarter last year.
Revenue was down about 10 percent to 186.61 billion yen, compared with 207.23 billion yen a year ago, it said.
The company blamed a slow recovery in the global economy, especially in Europe and China.
"In addition, the yen continued becoming stronger against the euro which was the main factor for the decrease in sales," it said.
Japanese manufacturers have been grappling with a strong yen -- which hit record highs against the dollar last year and remains strong -- as it makes their products pricier overseas and shrinks foreign-earned income.
Renesas has said it will focus on foreign markets and microcontroller chips used for next-generation energy-efficient vehicles and various electronic appliances as part of a major overhaul of its business.