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Japan: Renesas buying chipmaker IDT for US$6.7b

By  |  September 11, 2018
Japan’s Renesas Electronics announced it had agreed to buy Integrated Device Technology for US$6.7 billion, its second major acquisition as it deepens its push into semiconductors for self-driving cars.

Renesas is second only to NXP Semiconductors NV in auto-related chips and commands 30% of the global market for microcontrollers used in cars. But it is weak in so-called analog chips which process signals from things such as sound, light, or temperature into digital data.

Renesas Chief Executive Bunsei Kure said adding IDT would strengthen his company’s presence as a supplier of system-on-a-chip products for vehicles equipped with advanced driver-assistance systems and autonomous-driving technology.

“Competition in the semiconductor industry has become like mixed martial arts,” Mr. Kure said.

Mr. Kure said the US company has been looking to sell more to the auto industry and that made it a good fit for Renesas, which sells to many top automakers. Toyota is a minority shareholder in Renesas.

“We won’t chop IDT into pieces and swallow it,” Mr. Kure said. “IDT can accelerate its growth by using us as a catalyst.”

Full Content: The Wall Street Journal

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