TOKYO (Reuters) - Restructuring Japanese microchip maker NEC Electronics Corp <6723.T> said on Friday it may shed around 500 staff after announcing an early retirement program.

The loss-making firm, 70-percent owned by electronics group NEC Corp <6701.T>, said it had set aside 5 billion yen ($46.4 million) for the program, enough to compensate about 500 applicants.

NEC Electronics has about 18,000 staff in Japan

It said the move won't affect its full-year outlook.

Employees 40 years old or older who have been with the company five years or more may apply, NEC Electronics said.

The maker of chips used in Nintendo Co Ltd's <7974.OS> Wii console is consolidating its domestic production units and research centers. It said in November its restructuring would displace about 700 workers in total.

Prior to the announcement, shares of NEC Electronics closed up 0.7 percent at 2,220 yen, against a 0.2 percent fall in Tokyo's electrical machinery subindex <.IELEC.T>.

(Reporting by Mayumi Negishi; Editing by Hugh Lawson)