Japan’s Renesas says considering buying U.S. chipmaker IDT

Technology

TOKYO (Reuters) – Renesas Electronics Corp is considering buying U.S. chipmaker Integrated Device Technology Inc (IDT) as it pursues further growth, the Japanese automotive chipmaker said on Friday.

Renesas Electronics Corp’s logo is seen on its substrate at the company’s conference in Tokyo, Japan, April 11, 2017. REUTERS/Toru Hanai

The potential acquisition, first reported by the Nikkei business daily, comes as Renesas is beefing up its business in chips for self-driving cars.

The Nikkei reported that the deal would be worth as much as $6 billion, becoming one of the largest acquisitions for a Japanese chipmaker.

Renesas, second only to NXP Semiconductors NV in automotive chips, in a filing said nothing has been decided, but that it would be prompt in disclosing any decision made. It also said it is seeking the best financing method in the event of an acquisition, should financing be necessary.

Representatives for IDT could not be reached outside business hours.

Renesas, which bought U.S. chipmaker Intersil Corp for $3.2 billion last year, has been constantly reviewing its list of potential acquisition targets amid a wave of mega-mergers in the industry, its chief executive has said.

Buying IDT, which has strengths in chips for wireless network devices, could help Renesas enhance its capabilities in developing chips for data communications crucial for self-driving cars.

According to the Nikkei, Renesas plans to buy all IDT shares to take full control of the Nasdaq-listed company.

Renesas was created in 2010 from 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.

Reporting by Makiko Yamazaki; Editing by Christopher Cushing

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