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TOKYO, May 28 (Reuters) - Japan's Renesas Electronics Corp will issue 196.4 million new shares to raise 218.5 billion yen ($1.99 billion), the major supplier of automotive semiconductors said on Friday, aimed in part at helping to fund its acquisition of Dialog Semiconductor.

($1=109.9100 yen) (Reporting by Tim Kelly; Editing by Clarence Fernandez)