Renesas Electronics, the Tokyo-based semiconductor manufacturing company will acquire IDT (Integrated Device Technology), an American chipmaker for $6.7 B. The announcement was made public on Tuesday.
“IDT has been focusing on products that have longer life spans, higher reliability, and lower volatility. Even though we operate in different areas, our core strategies are very similar,” said Bunsei Kure, CEO of Renesas Electronics.
According to Renesas Electronics, the company’s main aim is to boost its expertise in autonomous car technologies. It will use IDT’s know-how chips for establishing wireless networks and data storage which is very important for autonomous vehicles.
To finance the deal, an amount of $ 6.1 B will be paid by Renesas Electronics in the form of cash and bank loans. The company will pay $49/ share and the deal is expected to end in the first half of 2019.
In the list of market share, Renesas Electronics ranks second, behind NXP Semiconductors NV. In 2017, the company brought Intersil Corp. for $3.2B. Intersil specializes in making semiconductors that manage battery voltage in hybrid and electric vehicles.
In 2010, Renesas was formed. The company is a merger of NEC Corp’s chip division and Renesas Technology, which itself was established through a merger of the chip units of Hitachi Ltd and Mitsubishi Electric Corp.
It will be interesting to see how Renesas will expand its presence in the autonomous vehicles industry after the acquisition is over.